In the face of a growing agricultural production risk and related price increase, risk management in agriculture is becoming increasingly important. Higher price risk is a result of continuing reforms of the Common Agricultural Policy and the weakening of the existing risk management mechanisms. Increased agricultural production risk is caused by escalating occurrences of adverse weather conditions resulting from climatic changes, which consequently bring about frequent and growing losses in the process of agricultural production. Hence such an importance of risk management today. The paper focuses on the system of agricultural produce insurance, which is one of the key risk management mechanisms. Both, advantages and pitfalls of developing insurance markets have been presented. Solutions functioning in Spain and Italy have been analysed and on that basis the current situation in Poland was assessed and described. The weaknesses of the Polish system were depicted and some desired changes postulated.
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