RISK ASSESSMENT METHODOLOGY IN CROP INSURANCE

Agricultural production is permanently and directly connected with a number of natural factors or forces that are difficult or impossible to predict. Crop production is most common outdoors, where crops are unprotected and exposed to various natural hazards (risks). The intensity of these hazards may be lower or higher, and at times even disastrous. Thus, for insurance companies, crop insurance is one of the riskiest forms of underwriting, whereas for the insured persons it represents one of the most important insurance lines. Accordingly, in insurance of crops and fruit, loss assessment is crucial because it is expected to ensure a realistic and objective indemnification of insured persons. Having in mind the abovementioned and numerous novelties introduced to insurance terms and conditions, this paper was produced as a result of the need to inform and meticulously explain to the insureds the methodology and manner in which the assessment of loss to crops and fruit is conducted. It is also intended to help loss adjusters with experiential knowledge acquired in the loss assessment process.

Key words: Loss assessment method, insurance of crops and fruit, risks in crop insurance.