Uman NUH | today: 09/10/2019

Features of insurance products for the agricultural sector of the economy

Author(s) Prokopchuk O.T., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Melnyk К. М., , ,
Huzar B.S., Candidate of Economics Sciences, ,
Category Economics
year 2017 issue Випуск №91. Частина 2
pages 32-44 index UDK 368:368.5.631(477)
DOI
Abstract At the present stage, the Ukrainian market of agricultural insurance requires the use of innovative approaches to the production of policies for the formation and sale of insurance services that have financial and economic interests in the protection of agricultural producers in terms of their parameters (both quantitative and qualitative). In this paper, the study of the classification of insurance protection of the agricultural sector in the context of classical (mono- and multi- risk) and index (based on indices-yields) was carried out using economic and statistical research methods, in particular monographic, comparison, tabular, graphical and scientific generalization , Profitability, weather, vegetation) of insurance products, their main advantages and disadvantages are identified, and the process of formation and realization of the latter in the rural household of course. According to the results of the study, the insurance coverage of the agricultural sector was classified in a specific section with the separation of classic (mono-risk (insurance against names of risks) and multirisk (complex)) and index (based on indices - yield, profitability, weather, vegetation) insurance products. Marked groups of insurance products are characterized by certain advantages and disadvantages, which in turn determines their different acceptability for different business entities with unequal financial possibilities and needs in the level of protection of property interests. It is established that multirisk (complex) insurance provides for the protection of agrarians from a wide range of unfavorable consequences, while the level of insurance tariffs does not correspond to solvent demand of insurers, and the high probability of losses on these insurance products negatively affects the financial stability of domestic insurance companies whose capitalization is inadequate. Therefore, the prospects for this type of insurance in the institutional conditions of Ukraine should be linked with the development of public-private partnership and subsidizing part of the insurance tariffs to agricultural producers. But index insurance, from the theoretical point of view, is more attractive for insurers in the agricultural market due to its lower cost, transparency, clarity, elimination of the subjective factor in determining the occurrence of the insured event and determining insurance compensation, standardization of conditions. The development of multirisk and index insurance in Ukrainian practice is constrained by the absence of statistical databases of agricultural risks, low level of actuarial activity and the absence of unified approaches to the development of insurance conditions and the calculation of insurance tariffs. To eliminate these factors, it is necessary to create centralized databases, tighten the requirements of the national regulator for insurance companies in reporting and disclosure of information on the terms of agricultural risk insurance contracts for individual plants and animals, and technically provide remote methods for settling catastrophic weather risks.
Key words insurance, agricultural activities, insurance products, the classic insurance index insurance.
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