Low Insurance Levels in Agriculture Persist

February 7, 2026

TL;DR

Only 12-15% of arable land in Serbia is insured, compared to up to 80% in some neighboring countries.
Climate risks are increasingly threatening agricultural production.
Over three billion dinars in damages were paid out in fruit farming alone in the last five years.
The state subsidizes 40-70% of insurance premiums.
Many insurance companies are cautious about offering frost insurance due to climate change and farmers planting in unsuitable locations.
While there's a slight increase in insured agricultural areas, most producers do not insure their crops.
Crop production is highest in terms of issued policies, followed by fruits and vegetables in terms of value per unit area.
The most common insured risks are hail, fire, and lightning strikes, followed by quantity and quality insurance for fruits and vegetables, and then spring frost, storms, and floods.
Farmers cite insurance prices as the main obstacle to wider adoption.
Insurers point out that damage per unit area can be tens of times higher than the premium cost for some crops.

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