COMPARATIVE ANALYSIS OF MAIN METHODS OF INSURANCE IN THE CROP PRODUCTION OF AGRICULTURAL CULTURE

Анотація

Insurance acts as one of the most effective elements of the financial system, which should protect the property rights and interests of economic entities in agriculture. As agricultural production depends to a large extent on the natural and climatic conditions that significantly affect the quality and volume of the crop, the urgent need for insurance of crops from unfavorable weather and climatic conditions (frost, hurricanes, storms, heavy rains, floods, hail and so on).
Methodological basis of the article are theoretical-analytical and empirical-factor methods of cognition, in particular logical and comparative analysis (in studying the state of the insurance market and insurance protection); economic and statistical (in the analysis of the domestic insurance market of agricultural crops); abstract and logical (when considering theoretical foundations and studying scientific approaches to the regulation of the insurance system); induction and deduction (in the formation of a holistic understanding of the conditions of the functioning of the system).
On the basis of the analysis of the basic methods of crop insurance, it is found that in our conditions it is expedient to use a method of insurance based on weather indices, the use of which allows to insure the yield of certain crops from adverse natural and climatic phenomena, taking into account the influence on it of natural properties - rainfall, air temperature, etc.
The obtained results of the research indicate that the use of weather indices in insurance of agricultural crops has a number of advantages over traditional insurance products. Firstly, the weather conditions have a significant impact on crop yields, and traditional insurance products with their disadvantages do not adequately meet the needs of agricultural enterprises in insurance coverage. Secondly, the use of weather indices, taking into account the level of influence of weather properties, will increase the objectivity of insurance protection for agricultural producers as it is easier and more comprehensible than other insurance products (multi-risk insurance, insurance of individual risks, insurance against total and partial death, etc.), and will reduce the level of abuse and increase the speed of insurance reimbursements. Thirdly, it will reduce the administrative costs of monitoring and assessing losses, and therefore reduce the cost of this insurance due to higher levels of insurance and standardization of contracts.
Further research on the distribution of enterprises by risk classes according to the values of weather indices is urgent, which would allow insurance companies to calculate insurance premiums and payments more effectively when implementing insurance relations in this segment of the market.