Insurance Protection of Agricultural Producers of Ukraine: A Review of Insurance Companies and Products

• Main Authors: Rubtsova Natalia M., Radchenko Nataliia H., Trusova Natalia V.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2021-04-01
• Series: Bìznes Inform
• Subjects: insurance protection; insurance companies; insurance products; agriinsurance; agricultural products insurance; the state support
• Online Access: https://www.business-inform.net/export_pdf/business-inform-2021-4_0-pages-249_256.pdf

The article is aimed at analyzing the work of insurance companies in the agricultural insurance market, evaluating their services for insurance protection of agricultural producers and studying the State’s efforts in supporting farmers in the sphere of agricultural insurance. In the course of the study, it is defined that the current system of agricultural insurance is unsatisfactory, and every year regressive processes are observed in the agricultural insurance market. The low demand for agricultural insurance in Ukraine is associated with the high cost of the service, limited choice of counter-parties, complexity of the insurance mechanism. The carried out analysis of the work of insurers in the agricultural insurance market indicates their partial participation in this type of insurance: for example, out of 64 insurers licensed for agricultural insurance, only less than a third provide services in this direction. As a result of the study of the line of insurance products for agricultural insurance, it is determined that complex and index insurance and insurance of animals and poultry are in great demand. It is found out that the extanrt system of agricultural insurance with the State support, even under the conditions of its functioning, would not have gained much popularity. The main reasons are a complex insurance mechanism, a one-time payment of 100% insurance premiums and the insecurity of the agricultural producer in obtaining the entire amount of subsidies belonging to him further on. In the future, in order to improve the situation in this industry, it is necessary to make certain amendments to the current legislation, which will revitalize the domestic sphere of agricultural insurance while providing confidence to agricultural producers in the continuity and reproduction of their output.