AGRICULTURAL INSURANCE ADOPTION IN ALBANIA: EVIDENCE FROM EMPIRICAL ANALYSIS

Authors

  • Altin Gjini Universiteti “Aleksandër Moisiu”
  • Etmond Shkembi Universiteti “Aleksandër Moisiu”
  • Luljeta Gjoni Universiteti “Aleksandër Moisiu”

DOI:

https://doi.org/10.18623/rvd.v23.n4.4896

Keywords:

Agricultural Insurance, Climate Risk, Institutional Trust, Premium Subsidization, Behavioral Perceptions

Abstract

Agricultural production in transition economies is increasingly exposed to climate-related risks, while the adoption of agricultural insurance remains limited despite its potential to enhance farm resilience and income stability. This study examines the key determinants of agricultural insurance adoption in Albania, a climate-vulnerable transition economy characterized by fragmented farm structures and evolving institutional frameworks. The main objective of the study is to identify the economic, institutional, and behavioral factors influencing farmers’ insurance decisions. The analysis is based on primary survey data collected from farmers across multiple regions of Albania and employs a binary logistic regression model to assess the impact of education, institutional trust, premium subsidization, climatic risk exposure, and behavioral perceptions on insurance adoption. The results reveal a significant gap between farmers’ willingness to insure and actual insurance uptake. While education and exposure to climatic risk increase awareness and willingness to adopt insurance, institutional trust emerges as the most decisive factor determining actual adoption. Premium subsidization positively influences insurance demand, although its effectiveness depends strongly on trust in insurance providers. Overall, the findings indicate that low insurance penetration reflects rational decision-making under institutional and economic constraints rather than a lack of information. The study concludes by emphasizing the need for integrated policy interventions combining financial education, trust-building measures, and stable subsidy schemes to strengthen agricultural resilience in transition economies.

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Published

2026-02-16

How to Cite

Gjini, A., Shkembi, E., & Gjoni, L. (2026). AGRICULTURAL INSURANCE ADOPTION IN ALBANIA: EVIDENCE FROM EMPIRICAL ANALYSIS. Veredas Do Direito, 23, e234896. https://doi.org/10.18623/rvd.v23.n4.4896

Issue

Vol. 23 (2026): Veredas do Direito, v. 23, 2026

Section

Articles

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