Management Theory and Studies for Rural Business and Infrastructure Development, Volume 10

Development issues of crop land insurance system in Lithuania

Gediminas Radzevičius

Abstract

The aim of this article is to provide insights into the public measures designed to support
and develop risk management system of crop cultivation. Insurance is a tool for risk management
of crop cultivation which is allowed to be applied by the WTO and is one of the most effective
ways to mitigate risk related to adverse whether conditions. Having in mind the fact that agriculture
is one of the most risky businesses in the light of adverse whether conditions, catastrophic
disasters, and the development of effective insurance system in agriculture is the main factor ensuring
the stability and persistence of agricultural production. The insurance services are under
way to be developed in Lithuania. In order to mitigate farming risk in Lithuania it is proposed in
the article to implement a developed model of multi risk insurance system for crop cultivation.
The role of the government in the model is to compensate a part of insurance premium and provide
some institutional investments (to provide risk calculations (by actuaries) and methodological
documentation, to train farmers – experts for determination of losses, to develop needed informational
infrastructure and i. e.).

Keyword(s): Multi risk insurance of crops cultivation, insurance model


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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.