Based on the literature review and implementation of a semi-structured interview with employees of insurance companies, the paper gives an overview of the most important characteristics and the way of functioning of agricultural insurance in the World and the EU and their comparison with Croatia. The basis of this paper is comparison between the supply and the way of agricultural insurance subsidies of the most developed countries of EU, on one side, and Croatia, on the other. Also, the coverage risks, insurance premium subsidies and the functioning of the agricultural insurance system in Spain, Germany, Italy and Slovenia are analyzed. Insurance is a way of preventative action in order to reduce the risk of consequences. The main features of the agricultural insurance system in the EU are a great heterogeneity with regard to insurance offer, the risks that are covered, the possible agricultural production that can be insured, the degree of state inflow, etc. The results of a semi-structured interview are showing how the main features of agricultural insurance in Croatia are a weak supply of insurance companies, but also low demand, so only five insurers in their offers offer animal, crop and plant insurance. Thanks to „Measure 17. – Insurance of crops, animals and plants“ a lot of the insurance companies see a big shift in this type of insurance (premium growth, number of contracted insurance policies, increased interest). The growth of insurance premiums and the contracted policies is noted. Also, they face the problem of slow state administration and still, insufficient financial literacy of farmers. The possibility of co-financing part of the insurance policy for crop, animals and plant under the Rural Development Program of Republic of Croatia for the period of 2014-2020 updates the topic of agricultural insurance. In addition to agricultural insurance as well as other forms of risk management in agriculture of Croatia, there are numerous challenges and long-term adaptation process of adjustment to changed production conditions (climate change) but also to innovations (digital technology, satellite imagery, drones etc.) to reach developed countries of the World and Western Europe.