Mutual insurance companies as a tool for farmer income stabilization: performance and prospects in the CAP

The European Commission is currently considering the introduction of income stabilisation tools as a means of stabilising farmers’ incomes throughout the European Union. One of the options is to use mutual insurance schemes. The objectives of this paper are to analyse the performance of mutual insurance companies currently operating in The Netherlands and to discuss the pros and cons of mutual insurance schemes as tools for farmer income stabilization. Data was collected through interviews with the companies’ experts and from the companies’ websites. We conclude that, even though provision of net income and revenue insurance goes beyond their expertise, mutual insurance companies are effective in insuring farmers against income fluctuations arising from specific agricultural production risks. In order to encourage solidarity among farmers, policy support that stimulates the development of local mutual insurance companies can be more beneficial than support aimed at companies operating in more than one European country.

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 Record created 2017-04-01, last modified 2020-10-28

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