FEATURES OF AGRO INSURANCE IN AUSTRIA AND GEORGIA

Insurance is a risk management financial instrument that involves the transfer of risk in whole or in part to an insurance organization. Crop insurance in agriculture is of great importance. Thus, the implementation of the agro insurance program is very relevant and vital for the farmer. Properly managed agricultural reform and the development of agro insurance will contribute to economic growth, country development and the well-being of the population. The main functions of agro insurance are to facilitate agricultural production and to compensate for the damage caused by the realization of agro risks. Agro insurance is a sub-type of property insurance that reduces risk for the farming sector and stimulates the development of agricultural production. Thus, the implementation of agro insurance is important for the farmer. The purpose of the paper is to compare the peculiarities of agro insurance between the two countries. The objectives of the study are to study the situation in the agro insurance market of Georgia and Austria, to analyze the state agro insurance program. It should be noted that the governments of both countries subsidize agro insurance. The difference is that 70% of the insurance premium in Georgia is subsidized and 50% in Austria. The main four risks in Georgia are insured: hail, storm, flood, autumn frost (citrus only). In Austria, a wider insurance package is offered to farmers, taking the following risks: hail, frost, storm, flood, snow, drought, fire. It should be noted that agricultural insurance has been helping farmers to compensate for the damage caused by insurance risk in Austria since 1947. In Georgia, this product is quite young only covers 12 years and requires time to develop more and farmers understand its goodies. Keywords: agro insurance, income stabilization, agro risks, financial loss.