Commercial Insurance as Risk-Management Tool in Sugar Beet Insurance

The paper examines the role of commercial insurance as a tool for managing risks in sugar beet insurance in the Czech Republic. Using commercial insurance, farmers can eliminate the impact of weather fluctuations and other risks on their business. Based on an analysis of domestic and foreign literature, the theoretical basis was defined, and an analysis was conducted concentrating on the products insurance companies offer in the context of risks that may affect beet industry. The data were collected based on a market analysis and were supplemented with statistics from the Czech Insurance Association. The literature review helped us define the main risks and other risk management tools. Between 2000 and 2019, global output and consumption of sugar increased thanks to the steady growth of the world population and the growing demand for sugar by industrial consumers. Finally, the results indicate that there are five major insurance companies that offer commercial insurance that covers the basic risks of the industry; this insurance is supported by the Czech government.