The system primarily covers multi-peril crop insurance and, to a lesser extent, livestock disease insurance. Latvian crop policies typically insure against damage from hail, storms, frost, and winterkill, and some insurers offer drought coverage (often with high deductibles). Hail is the most insured peril, a legacy of stand-alone hail insurance, but multi-peril packages have grown in popularity. Insurers use a risk and set premiums. Loss assessments are conducted through field sampling, on-site inspections, and increasingly, drone technology. Although each insurer maintains its own risk database, there is currently no unified national database for agricultural insurance. Livestock insurance is generally limited to direct losses from accidental deaths but also from diseases like AsF or avian influenza. Insurance for indirect to 12 percent of the insured value, depending on the number and severity of risks covered, the crop type, and the farm's claims history. This range is broader than in most EU countries, where premiums typically fall between 2 percent and 8 percent. Deductibles in crop insurance range from 0 percent to 30 percent, while livestock insurance generally features lower deductibles. Gaps in market coverage remain. Farmers generally feel they have flexibility in choosing insurance pro. viders, citing differences in premiums, coverage, conditions, and trust factors like reliability and admin- istration. However, significant limitations persist, especially in livestock insurance, where age restrictions and herd-wide coverage requirements make policies costly and impractical. Crop insurance also faces gaps, age for crops and small ruminants. Farmers express interest in compensation for indirect losses, like herd renewal and grassland reseeding. Also, certain sectors, especially high-value horticulture crops (e.g. vege- Despite general satisfaction with on-site loss assessments, disputes often arise over grain maturity stages, winter damage evaluations, and inconsistent or unclear risk definitions. made during the last decade in Latvia. Overall, the volume of premiums increased for both crops and live- stock, but the increase was faster for crops. The Compound Annual Growth Rate for crops, over 2014-2023 was 41 percent, versus 17 percent for livestock. The loss ratio of Latvian crop insurance can swing widely: mild years see low claims, but bad-weather years (like 2017's floods or 2021's frost or 2023's compound per- ils) result in high payouts. The relatively small pool of insured farms means individual events can sig- nificantly impact insurers, which in turn keeps premiums high - a chicken-and-egg challenge where low