Agricultural Insurance in Serbia: the Development and Developing Perspectives

In accordance with the categorization done by the Organization for Economic Co-operation and Development (OECD), 85% of the territory of the Republic of Serbia is considered rural. Agriculture in Serbia is of great economic and social importance, and therefore agricultural insurance should be developed as well, especially in the conditions when the climate changes are becoming even more marked. Agricultural production is considered high-risk. Apart from the production risks, agriculture is also exposed to institutional, financial and personal risks. Consequently, it is necessary to plan, organize, establish and develop an adequate risk management system in agriculture. Agricultural risk management system should be introduced in big companies as a segment of corporation management, as well as in small and medium agricultural companies, and agricultural households. When it comes to production management risks, or possible weather changes, insurance is definitely the best possible option. The aim of the study is to emphasize the significance of agricultural insurance in Serbia, analyze the current development and suggest a potential development model.