Municipal-Level Risk Differentiation as a Tool for Improving Financial Sustainability of Public-Private Agricultural Insurance Schemes: Evidence from Georgia

Municipal-Level Risk Differentiation as a Tool for Improving Financial Sustainability of Public-Private Agricultural Insurance Schemes: Evidence from Georgia | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Municipal-Level Risk Differentiation as a Tool for Improving Financial Sustainability of Public-Private Agricultural Insurance Schemes: Evidence from Georgia Aleksandr Sichinava, Archil Tsertsvadze, Shorena Jadugishvili This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-8909607/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract Georgia’s public-private agricultural insurance system faces significant challenges, including low farmer awareness, prevalence of small farms, and spatial heterogeneity of climate risks. This study aims to develop a municipal-level, risk-based premium model and assess its impact on the financial sustainability of agricultural insurance. The methodology is based on official statistics from 2014–2024, data from insurance companies, and international references, incorporating historical loss analysis, calculation of municipal risk coefficients, and formulation of net and gross premium rates. The results indicate that risk-adjusted premiums differ substantially from uniform rates, providing stronger financial buffers in high-risk regions and reducing the net loss ratio. Empirical analysis confirms that municipal risk coefficients explain the majority of observed losses. The study demonstrates that a municipal risk-based approach improves the financial resilience of the insurance system, optimizes subsidy allocation, and enhances farmer participation. These findings offer evidence-based guidance for designing sustainable and efficient agricultural insurance schemes in Georgia. agricultural insurance risk-based premiums municipalities Georgia financial sustainability loss ratio subsidized program Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-8909607","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":599321423,"identity":"b2707bc4-40d3-4dfd-847e-f2fd8bcde7aa","order_by":0,"name":"Aleksandr Sichinava","email":"","orcid":"","institution":"Georgian Technical University","correspondingAuthor":false,"prefix":"","firstName":"Aleksandr","middleName":"","lastName":"Sichinava","suffix":""},{"id":599321424,"identity":"37fe6bb7-343a-4ed8-8951-25556f7dca41","order_by":1,"name":"Archil Tsertsvadze","email":"","orcid":"","institution":"Georgian Technical University","correspondingAuthor":false,"prefix":"","firstName":"Archil","middleName":"","lastName":"Tsertsvadze","suffix":""},{"id":599321425,"identity":"06734b5f-91a7-4783-9a41-9d617883e89e","order_by":2,"name":"Shorena Jadugishvili","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA+0lEQVRIie3PsWoCMRzH8X8IZLrimkMxr5AjIHRpXyUS8BbdhVqNCHGq8x2+SEchEJd7AAsuXW5WKMUOLY3o2EBvKyVfApflQ34HEIv9xejl0yWNiWhO+vrXgq0X7nB8vstX7WXdHk/2rAXYHd/gsRsifO9UWVZqZDpVL61cnZWaqHUHtiJI6FDgG4NHhg5JqomVfJMITMEFp7LCk08zywnN61R/WXl/JbPg3+08QcZKQmUvnfsLh0SgA0xkcNhuoNCT2WZ+mLidr2xWWKIw8E0WHqYsfJgHxor89UW/W9ZaLiw6jacs9MoPYX8SbhuIc+gE04YkFovF/nHfMBxQMs9QCYIAAAAASUVORK5CYII=","orcid":"","institution":"Georgian Technical University","correspondingAuthor":true,"prefix":"","firstName":"Shorena","middleName":"","lastName":"Jadugishvili","suffix":""}],"badges":[],"createdAt":"2026-02-18 12:56:27","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-8909607/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-8909607/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":104950497,"identity":"4f56fd17-a492-40ff-b764-1b48dcb916cb","added_by":"auto","created_at":"2026-03-19 06:41:00","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":668021,"visible":true,"origin":"","legend":"","description":"","filename":"ShorenaJadugishvili1.pdf","url":"https://assets-eu.researchsquare.com/files/rs-8909607/v1_covered_5ec4e33f-c3f7-4424-90b0-5aa4f00bca47.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Municipal-Level Risk Differentiation as a Tool for Improving Financial Sustainability of Public-Private Agricultural Insurance Schemes: Evidence from Georgia","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"agricultural insurance, risk-based premiums, municipalities, Georgia, financial sustainability, loss ratio, subsidized program","lastPublishedDoi":"10.21203/rs.3.rs-8909607/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-8909607/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eGeorgia\u0026rsquo;s public-private agricultural insurance system faces significant challenges, including low farmer awareness, prevalence of small farms, and spatial heterogeneity of climate risks. 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