Uman NUH | today: 12/21/2024
| Author(s) |
Prokopchuk O.T., Candidate of Economics, , Uman National University of Horticulture, Ukraine Клименко В. О., , , |
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| Category | |||
| year | 2023 | issue | Issue number 102. Part 2 |
| pages | 60-71 | index UDK | 368.5 | DOI | 10.32782/2415-8240-2023-102-2-60-71 (Link) |
| Abstract | Global climate changes, under which the weather factor affects the results of agricultural producers more significantly every year, determine the expediency of practical use of insurance services based on parametric insurance solutions in the agricultural sector of the economy of Ukraine, which are able to ensure the stability and profitability of the latter's activities under the condition of minimal costs. It was determined that parametric (index) insurance is one of the effective risk protection tools for agricultural producers. This type of insurance is based on the use of indicators that reflect losses that may occur as a result of certain natural disasters or changes in market conditions. At present, the Ukrainian agricultural insurance practice is characterized by diffusion weather index insurance products, yield index insurance has not gained significant traction. Thus, it was established that parametric (index) insurance is an important element of the development of the agricultural sector of the economy, as it allows to reduce risks and increase the financial stability of agricultural enterprises. This type of insurance can ensure the stability of agricultural producers' incomes and reduce their dependence on market fluctuations and weather conditions. It has been established that one of the key issues to be resolved when using parametric (index) insurance in the agricultural sector is the determination of the indicators by which the loss will be compensated. This requires a comprehensive analysis of both weather and market conditions, as well as other factors that can affect the yield or the cost of products. It is also important to determine the accuracy and reliability of the data used in the calculation of indicators. The results of the research reveal the general features of the parametric scheme of insurance protection for the agrarian sector of the economy of Ukraine. The article focuses on the analysis and interpretation of the main indicators that reflect the trends and dynamics of the development of the parametric scheme of insurance protection for the agricultural sector of the economy, in particular in the area of insured areas (a three-fold increase) and concluded insurance agreements (a noticeable increase of five times), the amount of insurance compensation (an increase of almost 4 times). The researched and described trends are typical for the 2018–2021 interim period, instead, 2022 became a year of extremely difficult tests in the functioning of the insurance market of Ukraine in general and its agricultural insurance segment, in particular. It was determined that the share of insurance contracts under this insurance protection scheme for which insurance compensation was paid reaches almost 40 % (during 2018–2022), which is a fairly effective indicator. In 2021, insurance compensation was carried out for half of all concluded agreements with agricultural producers. | ||
| Key words | Global climate changes, under which the weather factor affects the results of agricultural producers more significantly every year, determine the expediency of practical use of insurance services based on parametric insurance solutions in the agricultural sector of the economy of Ukraine, which are able to ensure the stability and profitability of the latter's activities under the condition of minimal costs. It was determined that parametric (index) insurance is one of the effective risk protection tools for agricultural producers. This type of insurance is based on the use of indicators that reflect losses that may occur as a result of certain natural disasters or changes in market conditions. At present, the Ukrainian agricultural insurance practice is characterized by diffusion weather index insurance products, yield index insurance has not gained significant traction. Thus, it was established that parametric (index) insurance is an important element of the development of the agricultural sector of the economy, as it allows to reduce risks and increase the financial stability of agricultural enterprises. This type of insurance can ensure the stability of agricultural producers' incomes and reduce their dependence on market fluctuations and weather conditions. It has been established that one of the key issues to be resolved when using parametric (index) insurance in the agricultural sector is the determination of the indicators by which the loss will be compensated. This requires a comprehensive analysis of both weather and market conditions, as well as other factors that can affect the yield or the cost of products. It is also important to determine the accuracy and reliability of the data used in the calculation of indicators. The results of the research reveal the general features of the parametric scheme of insurance protection for the agrarian sector of the economy of Ukraine. The article focuses on the analysis and interpretation of the main indicators that reflect the trends and dynamics of the development of the parametric scheme of insurance protection for the agricultural sector of the economy, in particular in the area of insured areas (a three-fold increase) and concluded insurance agreements (a noticeable increase of five times), the amount of insurance compensation (an increase of almost 4 times). The researched and described trends are typical for the 2018–2021 interim period, instead, 2022 became a year of extremely difficult tests in the functioning of the insurance market of Ukraine in general and its agricultural insurance segment, in particular. It was determined that the share of insurance contracts under this insurance protection scheme for which insurance compensation was paid reaches almost 40 % (during 2018–2022), which is a fairly effective indicator. In 2021, insurance compensation was carried out for half of all concluded agreements with agricultural producers. | ||