Agricultural insurances in Romania: present and future aspects

Mitu, Narcis Eduard (2007): Agricultural insurances in Romania: present and future aspects. Published in: Finance - Ghallenges of the Future, ISSN 1583-3712 , Vol. No. 6, (2007): pp. 198-206.

Abstract

Concern for risks that stifle investment and contribute to vulnerability of the rural poor is a driving force behind various types of agricultural insurance. Insuring small-scale farmers against crop losses to adverse weather or other hazards has attracted public sector involvement in the provision of agricultural insurance in many countries among which Romania. With few exceptions, such interventions have encountered severe problems owing to high administrative costs, moral hazard, adverse selection etc. Government interventions should be aimed at improving the accessibility and quality of private sector insurance. This will require the establishment of a framework for responding to severe systemic events affecting agricultural production, and establishing an appropriate regulatory environment to foster private sector innovation and investment in services for less catastrophic events. Thus, in this item we tried to illustrate some elemental incident to appearances agricultural insurances in Romania.

• Item Type: MPRA Paper
• Language: English
• Keywords: agricultural insurances, moral hazard, adverse selection, weather insurance, weather derivative
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G22 - Insurance ; Insurance Companies ; Actuarial Studies; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products; P - Economic Systems > P4 - Other Economic Systems > P42 - Productive Enterprises ; Factor and Product Markets ; Prices ; Population

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