The Role of Insurance in Risk Management andInvestment Promotion of Modern Agribusinesses(The Case of Greenhouse Cultivation in TehranProvince)

Insurance has always been an efficient tool in facilitating production and increasing investment through the world. Meanwhile, lack of investment hasbeen a constant problem in the agricultural sector, as one of the most vulnerable economic sectors. Hence, insurance, as an effective tool forsecuring the return on investment, is likely to solve this problem. The current research is aimed at identifying and analyzing the role of insurance in riskmanagement of modern agribusinesses. In order to fulfil the research objective, a mixed method research was designed and qualitative and quantitative toolswere developed. In the qualitative part, the research population includes the experts of agriculture and investment in new businesses, while the populationof the quantitative part is composed of greenhouse owners in Tehran province. 9 interviews were carried out in the qualitative part and data were analyzedthrough open and axial coding. In addition, 137 questionnaires were investigated in the quantitative part. Quantitative data were analyzed by structural equation modelling method. The results demonstrate that various types of risk, including production, market, and environmental risks have a negative effect on the insurance rate, In other words, insurance coveragedecreases when risk increases, which is a rational result. Moreover, insurancehas a positive effect on investment promotion and can offset the negative effectof risk and lead to an increase in investment and hence, establishment of newbusinesses in this field

Keywords:

Insurance , risk management , investment promotion , modernagribusinesses