"Fertility" of Agricultural Risk Insurance in Armenia

Abstract

For a sustainable and balanced development of the agricultural sector effective risk management process is a key point to create fertile ground for the further development of the insurance process. Current challenges that the agricultural sector is faced with, dependence on natural disasters and other factors hindering sustainable growth, force us to develop models that will be fostering the sector's progress. Based on international experience the insurance system is one the most effective tools to promote the stability and further development of the agricultural sector. The main factor to improve agricultural productivity is the possibility of loss compensation which can be created due to the proper implementation of the insurance process. The new situation created as a result of the implementation of pilot programs of agricultural insurance in the Republic of Armenia, their effectiveness, and, very importantly, main benefits are comprehensively presented in the paper. What are the results of the implementation of agricultural insurance in the Republic of Armenia? How can the current situation be changed? What steps should be taken to set new development guidelines? The answers to these and many other important questions can be found in the research․