Insufficient information is the main reason for the limited number of concluded contracts of insurance against losses in the process of agricultural production. Barriers to information flow distort both the demand and supply curves. Consequently, the prices at which insurance protection is offered are too high in the opinion of most farm producers. Since a well-functioning agricultural production insurance market would involve many measurable advantages, governments of many states intervene in order to cut insurance policy prices. Nevertheless, as a result of the unsolved problem of information asymmetry, usually only a small group of farms, involved in particularly risky kinds of production, as well as private insurers become the main beneficiaries of these activities.