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Formation peculiarities and modern tendencies of functioning of the Ukrainian market of agricultural insurance services
The development of agrarian insurance is an integral part of the formation of modern financial and economic infrastructure in the field of production, processing and marketing of agricultural products. In world practice one of the factors of economic development stability of agricultural production and an effective tool for ensuring financial and economic stability of agrarian enterprises is agricultural insurance. At the same time, the domestic market of agricultural insurance services is at the stage of introduction and development and only the first steps in this complicated market segment are made.
Using general scientific methods of scientific knowledge and research of economic phenomena, this paper gives a detailed analysis and assessment of current trends in the functioning of the Ukrainian market of agricultural insurance services in terms of its key components, in particular in the regional context, in terms of insurance companies, agricultural crops, insurance products and agricultural financing programs.
The conducted research of modern tendencies of functioning of the Ukrainian market of agricultural insurance services has allowed us to characterize 2017 underwriting year as positive in terms of growth dynamics improvement of basic indicators on a portfolio, as well as expansion of the marketing product range of typical types of insurance products that are in demand. Thus, there was an increase in the volume of collected insurance premiums by 30 %, in average premium rate up to 3.5%, in the number of concluded insurance contracts by 21 % and in the number of insurance companies that carried out insurance of agricultural risks up to 13. It is found that multi-risk insurance contracts dominated in the market.
It is revealed that insurance related to agricultural producers’ financing programs accounts for about one third of all contracts concluded in the market and all insured areas. The terms of insurance under these contracts are somewhat different from those that are used in the market on average. In particular, the average rate of premium for these contracts is 4.3 %. The bulk of premiums are concentrated in the field of insurance of field crops and 66% in percentage are of Agrarian Fund and State Food and Grain Corporation Programs of Ukraine.
In the process of analyzing activities of insurance companies in the segment of agricultural insurance there is a tendency to a slight increase in their number. At the same time, in 2017, only 13 out of 58 insurance companies carried out insurance of agricultural risks that received a license to engage in insurance activities in the form of voluntary insurance for agricultural products.
According to the results of the research, the general vector of development of the domestic agricultural insurance market is aimed at increasing and improving its qualitative characteristics.
Keywords: agro-insurance, market of agro-insurance services, insurance amount, insurance premium, insurance product.
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