Uman NUH | today: 05/17/2023

The necessity of the creation and operation of the agricultural insurance market

Author(s) Nepochatenko Olena O., Doctor of Economics, Professor, Rector of Uman National University of Horticulture, Head of Department, Uman National University of Horticulture
Bechko P.K., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Bondarenko N.V., , , Uman National University of Horticulture
Vlasyuk S.A., , , Uman National University of Horticulture
Трушевський О. О., , ,
Category Economics
year 2022 issue Issue number 100. Part 2
pages 8-17 index UDK 368:338.436
DOI 10.31395/2415-8240-2022-100-2-8-17 (Link)
Abstract A complete system of insurance relations in the agricultural sector has been established, and it was determined that it is based on specific principles that determine the financial, economic, organizational and legal foundations for the operating of agricultural insurance market. It is also researched that the ability of the underwriter to fulfill its duties according to insurance terms promptly and effective at the time of the contract, depends on the management and reduction of risks; and their effectiveness inherent in insurance companies in the course of their current activities. It has been found that, regardless of the offered pattern of relationships in the agricultural business insurance market, it is the development of insurance programs that plays an important role, on the basis of which insurance products are formed for sale to potential insurers. The main insurance programs that are used to insure agricultural risks in different countries are indicated. The foreign experience of agricultural business insurance is considered and it is established that they traditionally consume classic insurance products, especially multi-risk crop insurance (Multi-peril cropinsurance), which allows obtaining maximum insurance protection for an appropriate fee. According to the program (MPCI), insurance covers the risks associated with the possibility of natural disasters, including hail, excessive humidity, flooding, drought, strong winds and other natural disasters. It is revealed that in index insurance contracting the critical or threshold values are indicated. Options for using indices in the system of agricultural insurance are proposed. It has been determined that the set of insurance programs offered in the global agricultural business insurance market produce the prerequisites for the formation of financial and economic ties between participants in the insurance process. An assessment of the coverage degree of agricultural risks by insurance is given with the assistance of the indicator of the ratio of insured areas to cultivated areas. It is determined that the unused capacity of many insurance companies is in understanding the provision of relevant services to agricultural producers. It has been established that an important incentive for the further development of insurance relations in the agricultural sector is the rational combination of the efforts of classical insurance companies, mutual insurance companies and insurance cooperatives in countering potential risks associated with the production of agricultural products.
Key words agricultural sector, agricultural business insurance, agricultural insurance, insurance premiums, risk insurance
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