MULTIPLE PERIL RISK INSURANCE OF AGRICULTURAL CROPS – A MYTH OR REALITY

Abstract

The insurance of agricultural crops is a conservative type of insurance. It is quite rarely that radical organizational changes are introduced. Currently, however, conditions dictate the introduction ofthere are the necessary conditions such changes in the Republic of Bulgaria. Modern development of agricultural production is a prerequisite for changing the methodology of this type of insurance so as to adapt it to the demands of agricultural producers. This article develops the thesis that a similar change might be implemented by transforming the liability of insurance companies from a liability related to certain risks and losses to a liability referring to any risks and losses. In other words, it is possible to make the transition to the so-called multiple peril risk insurance. Multiple peril risk insurance is considered to be a novelty which has only recently been introduced in EU member-states with advanced economies. Therefore, it is the subject of large-scale discussions. The objective is to choose to introduce such an option that will best correspond to the specific features of the agricultural development and traditions in the Republic of Bulgaria and related insurance practice.