Scientific investigation of central aspects of insurance premium funding within the framework of the Hail Insurance Promotion Act

This project examines central aspects of insurance premium subsidies within the framework of the Hail Insurance Promotion Act. The planned approach is divided into a theoretical analysis of scientific literature (WP1) and two subsequent empirical analyses. First, in a theoretical literature analysis an overview of the design of similar funding systems in an international context is given and based on this, possible improvement potentials for the Austrian system are identified. Second, based on the theoretical literature analysis, a first empirical analysis identifies key drivers of the development of costs and demand in relation to the insurance premium support. Third, a second empirical analysis shows the individual farm-level effects of subsidized insurance in the current system. Through these 3 outputs, the project intends to also identify improvement potentials in terms of data requirements for effective monitoring. The results of the planned research project therefore represent a well-founded information basis that political decision-makers can use for the further development of the Austrian system of insurance premium support in agriculture.