Abstract
The livestock sector in Egypt is currently facing different threats including diseases. Investments of many small farmers were lost either due to diseases or emergency slaughtering. Livestock insurance can save farmers’ investments in such obscure conditions. The objective of this research is to study the livestock insurance trends among the governorates through the period 1996-2012 to set guidelines for its future development. This research was based on data published by the Central Agency for Public Mobilisation and Statistics (CAPMAS). Data were statistically analyzed for examining the relationship between quantitative variables, using correlation analysis, regression modeling. To test the effects of year and governorate on the studied variables, One-way ANOVA procedure was fitted. All statistical analyses were carried out by SPSS for windows. Results showed strong positive correlation between number of deaths/emergency slaughtered and the compensation value paid to farmers. About 80.6 % of variations in compensation value were explained by the number of deaths/emergency slaughtered; and that if the number of deaths increased by 10 %, then the compensation value will increase by about 13642 EGP. The number of deaths/emergency slaughtered and the compensation value varies significantly among different years and governorates (P < 0.05). It is concluded that development of the insurance sector can save investments in Egypt with the recent increasing risk of diseases and price volatility.

Key words: Animal diseases - compensation value – emergency slaughter - insurance premium - livestock economics – livestock insurance