AGRICULTURAL INSURANCE AS AN INSTRUMENT OF THE ORGANIZATIONAL AND ECONOMIC MECHANISM FOR ENSURING REPRODUCTIVE PROCESSES IN AGRICULTURE

Issue № 9, 2024, article № 7, pages 62-72

Section: Investment and innovation in agriculture

Language: Russian

Original language title: АГРАРНОЕ СТРАХОВАНИЕ – КАК ИНСТРУМЕНТ ОРГАНИЗАЦИОННО-ЭКОНОМИЧЕСКОГО МЕХАНИЗМА ОБЕСПЕЧЕНИЯ ВОСПРОИЗВОДСТВЕННЫХ ПРОЦЕССОВ В СЕЛЬСКОМ ХОЗЯЙСТВЕ

Keywords: AGRICULTURAL INSURANCE, INSURANCE PREMIUM, INSURANCE COST, INSURANCE INDEMNITY, STATE SUPPORT, INSURANCE TARIFFS, SIMPLE REPRODUCTION, EXTENDED REPRODUCTION

Abstract: The article is devoted to the analysis of agricultural insurance and the assessment of its role in ensuring the sustainability of reproductive processes in agriculture. The volume of the agricultural insurance market remains insufficient at present. Agricultural producers have little interest in insurance due to the low level of insurance indemnity payments and the relatively high cost of insurance services. In agricultural insurance with state support, there is a disparity in the use of monetary resources, as a result of which most of the insurance premium paid by insurers’ remains in the reserves of insurance companies. This situation is explained by the inflated level of insurance tariffs, which do not take into account the real probability of occurrence of insurance events and the amount of damage. As a result, the level of payments is low. It is necessary to develop insurance tariffs calculated on the basis of objective data on the probability of occurrence of insured events and the amount of loss over a long period of observation. The insurance programs currently in force: multi-risk and in case of emergency situations (emergencies) do not sufficiently ensure the restoration of reproductive processes in agriculture. It is necessary to improve agricultural insurance models and insurance techniques in the direction of increasing the level of insurance damage coverage. When insuring crops, the amount of the insured amount should be set at a higher level in relation to the insured value and the maximum deductible level should be reduced to 20 percent. It seems advisable to carry out agricultural insurance with state support through a specially created state insurance company.

Authors: Savkina Galina Mikhailovna