The increasing frequency and intensity of climate extremes have significantly increased the exposure of the agricultural sector to production and income risks, generating substantial fiscal pressures through extraordinary state interventions. Against this background, the subsidization of agricultural insurance premiums has emerged as an important instrument for strengthening agricultural risk management and supporting the development of agricultural insurance markets.The aim of this paper is to examine the development of agricultural insurance in Serbia and to analyse the role of public support measures, particularly premium subsidies, in strengthening the position of agricultural insurance within the non-life insurance sector. The analysis is based on trends in the share of agricultural insurance premiums in total non-life insurance premiums, as well as on the dynamics of agricultural subsidies in Serbia and selected European countries. The findings indicate that the expansion of public support has been accompanied by the gradual growth of agricultural insurance within the Serbian insurance market, suggesting the increasing importance of insurance mechanisms in managing climate-related agricultural risks. The paper contributes to the discussion on the role of fiscal policy in supporting agricultural risk management and strengthening the institutional framework for climate adaptation in agriculture.

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