Complex Agricultural Risk Management System: a new information system supporting the claim adjustment process in the Hungarian agriculture

Abstract

On an annual basis the magnitude of the weather-related risks of the Hungarian farmers approaches the 100 billion HUF. It is about 5 percent of the 2200 billion HUF annual gross output value of the agriculture. It is a continuous tendency that the climate factors are more and more significantly influencing the crop production. Therefore, reducing the risks related to the weather is an important objective of the agricultural administration. For this purpose the agricultural administration is trying to reach this goal by forming risk-management groups for the producers, by strengthening the liability for their decisions, and also by providing more significant support by the agricultural administration. The new system is based on two pillars: the first pillar is an extended mitigation system, and the second pillar is a business-based, but also state-sponsored insurance system. First, the study describes the agricultural risk management situation in general, then the partially "paper-based" coordinated mitigation system which was launched in 2012, and finally the integrated mitigation system which is being under development at the moment. The study reveals that in recent years the risk management of agriculture has been going through important changes, in particular, significant reduction in the administrative burden for both farmers and public administration, improvement of the accuracy of the agricultural meteorological risk evaluation, as well as a developed agricultural risk database serves as a reliable basis for the public decision-making.