Insurance as a Risk Management Tool in Agribusiness

The article is dedicated to the study of the theoretical aspects of insurance as a risk management tool in agribusiness. It is determined that the efficient use of insurance in combination with other risk management methods, such as diversification, financial planning, and modern agrarian technologies, contributes to the increased resilience of agricultural businesses. It is important to choose insurance products correctly, taking into account the characteristics of the farm, risk factors, and available government support programs. It is proved that various insurance models are applied in global practice – commercial, State-owned, public-private partnership, and mutual insurance. Each of them has its advantages and disadvantages, and their efficiency depends on the economic and climatic conditions of a specific country. It is further determined that, despite the importance of agricultural insurance, its level of prevalence remains insufficiently high. This is due to both economic and behavioral factors: the high cost of insurance payouts, distrust of insurance companies, low awareness among farmers, and the complexity of insurance procedures. To improve the efficiency of insurance in the agrarian sector, it is necessary to enhance government support, implement digital technologies (satellite monitoring, parametric insurance, blockchain solutions), and increase the financial literacy of agricultural producers. It is substantiated that an innovative approach to insurance and strengthening cooperation between the State, private insurers, and agricultural producers will make the agricultural insurance system more accessible, transparent, and efficient. This will contribute to increasing the resilience of agribusiness, maintaining the financial stability of farms, and ensuring the sustainable development of agriculture in the face of growing risks. Thus, insurance not only reduces potential losses but also promotes the development of the agricultural sector, making it more predictable and financially stable.