State to insure agricultural risks
By Messenger Staff
Thursday, November 1Georgian agriculture faces serious challenges. One of the most important issues is the fact that many insurance companies are not willing to insure agricultural projects. Out of the 14 insurance companies operating in Georgia, only four of them offer insurance for agricultural ventures. Agriculture is affected much by natural calamities and other events that are beyond the control of people. Therefore, insurance companies are reluctant to insure them. Agricultural insurance is very expensive worldwide. There is a common practice in Western countries where the state can get involved in insuring agricultural activities. There exists complicated system of insuring various segments and different activities within the agricultural sector. It is not clear as of yet what kind of system will be used by Georgian insurance companies. One thing is clear: Georgia definitely needs this civilized way of cooperation between the state and private agricultural sector. PM Ivanishvili promised to invest 1 billion GEL into the agricultural industry. Presumably, a certain amount of money will go to assisting farmers and insuring their activities.