Georgian Agricultural Insurance Market: Reality and Prospects

Agricultural activities face a multitude of risks. Natural disasters (hail, floods, hurricanes, droughts, etc.), parasites, pests and epidemic diseases pose a constant threat to farmers’ crops and income. Account should also be taken of such risks as price fluctuations on the market, accidents, fires and other malicious actions by third parties. Agrcultural insurance is the best way to transfer such risks to a third party. Accordingly, any country that considers agriculture as its priority, attaches great importance to the development of the agricultural insurance market.
Against the background of the ongoing global climate change and the spread of the new Coronavirus in 2020, the importance and necessity of the development of agriculture in the world, including agricultural insurance, has became even more apparent in terms of food security.
This thesis discusses the essence of agrcultural insurance, its types, functions and specificities, illustrates the significance of agrcultural insurance in the development of agriculture, examines the current situation in the Georgian agrcultural insurance market, analyses the results of the reforms implemented in agrcultural insurance and compares them to the situation prevailing prior to the reforms. The thesis also examines the global market of agricultural insurance and the experience of the world's leading countries in the development of this type of insurance. The last part of the thesis presents recommendations developed on the basis of foreign experience and are aimed at solving the problems identified in the Georgian agrcultural insurance market and developing the said market.