MODERN AGRICULTURAL INSURANCE DEVELOPMENT ALTERNATIVES

Abstract

For the development of agricultural insurances, new tools emerged which eliminate many of the problems of traditional agricultural insurances (for example, moral hazard, adverse selection, high transaction  costs) making them more viable and making their management more efficient. This article presents the  expert systems (as artificial intelligence solution), which, if implemented, would promote the current insurance products, enabling a selection according to each farmer’s needs and possibilities, such systems being continuously improved based on  the answers received from farmers;  the index-based insurance implementation, which is different from other types of insurance because allowances are not calculated from the farmer’s individual loss, an index independent from the respective farm  being used instead.