INSURANCE AGAINST NATURAL CALAMITIES IN AGRICULTURE - ROMANIA CASE

There are minimum three common and simple questions frequently asked about insurance in agriculture. Why it is necessary? How it is possible? What are the challenging issues in putting it into practice? Thus, this paper aims to provide readers with possible solutions or at least hints on these three questions, based on Romanian experiences. First, agricultural insurance is necessary because in last few years the significant climatic transformations negatively affected the agricultural activities. Through the insurance, the risks of the total or partial losses of the agricultural production are eliminated. A profitable agriculture can not be done without the agricultural insurance. The essential investments to till the land are too important to ignore the climatic risks, which can fail the farmers. Second, it is possible to contract agricultural insurances. Insurance companies from the entire world contract agricultural insurance for the agricultural culture and the animals. Third, the paper provides readers the challenging issues based on the technical aspects of agricultural insurances: to establish and to estimate the damages made by natural calamities, how it is calculate premium.