The Role and Challenges of Agricultural Insurance in Georgia

Abstract

Agricultural insurance, as an economic and financial mechanism, protects farmers and agricultural producers from financial losses caused by natural events. Agricultural insurance plays a significant economic and social role for Georgia, as agriculture is one of the country's most important sectors and is often damaged by natural disasters. The importance of the state agricultural insurance program is manifested in the following: financial protection for farmers, income stability, agricultural development, strengthening food security, and state support. Consequently, insurance mitigates the impact of economic losses caused by natural disasters and helps maintain employment and population income. This serves to mitigate these very risks, which in turn creates social stability for farm households and rural populations.