Insurance Principles as a Methodological Basis for the Formation of Insurance Relations in the Agricultural Sector of the Economy

2020 ◽  
Vol 2 (97) ◽  
pp. 22-35
Author(s):  
О.T. Prokopchuk ◽  
Keyword(s):  
Financial Stability ◽  
Agricultural Sector ◽  
Financial Economic ◽  
Insurance Market ◽  
Insurance Companies ◽  
Agricultural Insurance ◽  
Methodological Basis ◽  
Professional Activities ◽  
Contractual Relations ◽  
And Function

The specificity of the agrarian production process is associated with numerous risks of various species, which leads to a special formation of relationships between the subjects of the agro-insurance market, which should be based on certain specific principles. The functioning of the agricultural insurance market and, accordingly, the formation of a system of insurance relations in the agricultural sector of the economy is based on certain principles that determine the basis for the functioning of the subject composition of the agricultural insurance market in the context of financial, economic, organizational and legal components. Compliance with fundamental insurance principles ensures the possibility of achieving a balance of property interests of participants in insurance relations. The substantive basis of insurance principles regulates the value system of key subjects of the insurance market when concluding agricultural insurance agreements. In this context, it should be noted that knowledge of the insurance methodology requires an unambiguous interpretation of the essence of the principles of the latter, which is the basis for the formation of insurance relations in the agricultural sector of the economy. Consequently, insurance principles are the basis of insurance activities accompanying all stages of the insurance process, starting with pre-contractual relations, then continuing to support contractual relations and ending with participation in their post-contractual types. In essence, the principles of agricultural insurance make it possible to properly coordinate the professional activities of participants in the agricultural insurance market, aimed at neutralizing the risks of various types of population, reflecting the fundamental principles that provide appropriate conditions for the implementation of the interests of all participants in the specified market in the context of both social and economic types. According to the results of the study, the fundamental (basic) insurance principles are classified into three main groups: first — the principles used as the basis of the process of organizing and conducting insurance activities (group of basic insurance principles); second — for risk management of insurance companies (group of additional insurance principles); third — to include special clauses in insurance contracts (group of selective insurance principles). In addition, a set of principles are highlighted that are specific and function in agricultural insurance, forming a methodological basis for the development and distribution of insurance relations in the agricultural sector of the economy, to which, according to the research results, the following principles are attributed: voluntary participation, mutual interest, tariff justification, food security, subsidies and financial stability. This systematization will allow to properly coordinate the professional activities of participants in both the insurance market and its agricultural insurance segment aimed at neutralizing the risks of various species.

scholarly journals Factors influencing and dynamics of the agricultural insurance market

VUZF Review ◽  
2021 ◽  
Vol 6 (2) ◽  
pp. 42-49
Author(s):  
Nataliya Tanklevska ◽  
Vitalina Yarmolenko
Keyword(s):  
Crop Production ◽  
Agricultural Sector ◽  
The State ◽  
Insurance Market ◽  
Insurance Companies ◽  
Agricultural Insurance ◽  
Agricultural Producers ◽  
Agricultural Enterprises ◽  
Insurance Sector ◽  
Factors Influencing

The article is aimed at identifying modern features of insurance in the agricultural sector of the Ukrainian economy and defining the factors of influence on the agricultural insurance market. The article discloses interpretation of the terms of «insurance» and «agricultural insurance» and also presents the types of possible risks arising in the activities of agricultural enterprises. The performance indicators of leading insurance companies in the field of agricultural insurance are analyzed. The current state and dynamics of insurance of agricultural risks, which arise both in the field of crop production and in livestock, are researched. This will allow predicting the future prospects of the market for insurance services and products, as well as finding possible optimal ways to solve the problems of product insurance, faced by the agricultural producers. The main factors influencing the efficiency of the insurance market in the agricultural insurance sector are allocated. The basic principles of insurance of agricultural products with the State support are analyzed. It is defined that the further development of agricultural insurance should be directed towards creating a profitable and safe environment for all participants in the agricultural market, which provides for the distribution of risks between agricultural producers, processing enterprises, banks, insurance companies and the State. The agricultural insurance of risks creates possibilities for advantageous harmonizing the interests of participants in the agricultural insurance market and the State as a party whose first priority is to ensure stable economic growth.

The current state of the agricultural insurance market of Ukraine

2020 ◽  
Vol 2 (97) ◽  
pp. 208-218
Author(s):  
A.V. Rolinsky ◽  
◽  
Y.V. Ulianych ◽  
S.A. Ptashnyk
Keyword(s):  
Agricultural Production ◽  
Agricultural Sector ◽  
Insurance Market ◽  
Insurance Companies ◽  
Agricultural Crops ◽  
Agricultural Insurance ◽  
Stage Of Development ◽  
Current State ◽  
Increased Risk ◽  
Risk Insurance

Ukraine occupies a leading position in the world in the production and export of agricultural products. At the present stage of development of the agricultural sector, the most important task is its further development, because the country has significant potential to increase and improve the quality of production. Agricultural production is one of the important, specific and at the same time the most risky areas of human activity. Specific features of the agricultural market: high cost of facilities due to the large area of land, increased risk of production, cumulative losses due to natural disasters and progressive climate change, he duration of the production cycle, affects the profitability of farmers, necessitate the use of one of the most important tools for minimizing risks — insurance and, if necessary, further diversification of risks through reinsurance. The article considers the main indicators of agricultural insurance: in terms of insurance companies, in terms of regions, in terms of agricultural crops. The amount of insurance payments in terms of insurance companies and agricultural crops is analyzed. Trends in animal insurance are presented. The agricultural insurance market in Ukraine is developing slowly, but in recent years still shows a positive upward trend. For a country with a huge potential of the agricultural sector of the economy, the saturation of the agricultural insurance market with insurance services and the actual volume of agricultural risk insurance, undoubtedly, are insufficient. Now agricultural insurance in Ukraine is actively developing. However, despite the positive dynamics, the current state of agricultural insurance in Ukraine does not meet its main task - to manage risks in the agricultural sector to ensure its stable operation and sustainable development of the agricultural sector of the economy. The current system of agrarian risk insurance in Ukraine, including the provision of state support to the agricultural sector, requires improvement and should be aimed at ensuring adequate protection of the interests of agricultural producers and food security, stabilizing production and income in the agricultural sector and encouraging the best technology agricultural production

scholarly journals Innovative Approaches to the Use of Agricultural Insurance Potential

2021 ◽  
Vol 2 (98) ◽  
pp. 6-20
Author(s):  
O. O. Nepochatenko ◽  
◽  
О. T. Prokopchuk ◽  
M. I. Malyovanyi
Keyword(s):  
Quality Management ◽  
Agricultural Sector ◽  
Insurance Market ◽  
Insurance Companies ◽  
Structural Elements ◽  
Conceptual Approach ◽  
Agricultural Insurance ◽  
Agricultural Producers ◽  
Insurance System ◽  
Innovative Approaches

Highly profitable activities of insurance companies in the future, ie from the standpoint of short-term and long-term time frame, provides for the formation of a favorable insurance environment in which the interests of all key players in the agricultural insurance market will be taken into account and protected. In this context, it is important to introduce innovative developments in the field of insurance services to the agricultural sector of the economy. As a result, this study aims to form a conceptual approach to the formation of agricultural insurance relations based on innovative approaches to using the potential of agricultural insurance, based on the feasibility and need to involve IT technologies in the insurance system of the agricultural sector; building interaction between structural elements of the market on the basis of quality management as a basis for ensuring the competitiveness of insurance services in the agricultural insurance market and the emphasis on reengineering in agricultural insurance. signs will surpass their counterparts. Ensuring the competitiveness of the insurance service depends on the level of satisfaction of policyholders in the received insurance coverage. Innovation in insurance services is manifested in the expansion of services with risky components; development of specific service packages for different groups of agricultural producers (in particular, small, medium and large). According to the results of the study, modern approaches to the formation of an effective insurance system in the agricultural sector of Ukraine are identified, the key of which are: improving the system of intermediary services in the agricultural market to strengthen the interaction of insurance companies with infrastructure entities mediation through the involvement of the latter in the mechanism of insurance services and in order to increase the coverage of insurance protection of agricultural producers; expanding the horizons of cooperation between companies working in the field of insurance protection of agricultural producers and companies providing the latter in the sale of insurance products, which cover the crop segment; establishing an active and lasting dialogue between participants of the insurance process, which is based on the principle of customer-oriented approach, based on which it is advisable to integrate the interests of a particular agricultural producer, related to the need for insurance protection. the need to attract IT technologies to the insurance system of the agricultural sector of the economy. Conceptual approaches to the formation of agro-insurance relations on the basis of innovative directions of using the potential of agro-insurance are reflected, which provide for the need to involve IT technologies in the system of insurance protection of the agricultural sector of the economy; building interaction between the structural elements of the market on the basis of quality management as a basis for ensuring the competitiveness of insurance services in the agricultural insurance market, and emphasizing reengineering in agricultural insurance.

scholarly journals PROBLEMS OF AGRICULTURAL INSURANCE IN UKRAINE AND WAYS THEIR SOLUTIONS

2020 ◽  
pp. 20-34
Author(s):  
Larysa VDOVENKO
Keyword(s):  
Agricultural Production ◽  
Agricultural Sector ◽  
Insurance Market ◽  
Insurance Companies ◽  
Agricultural Insurance ◽  
Agricultural Producers ◽  
Economic Interests ◽  
Current Trends ◽  
Term Insurance ◽  
High Degree

The article is dedicated to the current trends of the agricultural insurance market in Ukraine. It has been established that for silskogospodarske, in accordance with the specific features and skills of the middling community, the need for a proper insurance business from a variety of derivative businesses in the case of uncomfortable natural businesses of unfair natural businesses. It is established that the risks inherent in agricultural production are systemic and create significant fees for most agricultural producers at the same time, which can lead to large insurance payments, so there is a system of regulation of complex economic processes in agriculture is insurance of agricultural products. The analysis of the legislative and normative protection of insurance claims has been completed. The payments were made, which is one of the important incentives for effective government insurance. The main indicators of insurance activity are analyzed, the development trends of the regions of Ukraine are determined, the problems of insurance and agricultural insurance are considered in the context of the participants in the events. A copy was made for the inexplicable activation of agricultural insurance as a key to the growth of the potential of the agricultural sector of the economy. In addition, the system of agricultural insurance is based on the protection of economic interests of the participants of the insurance companies (insurers, insurance and powers) and the short-term insurance of small losses in the aeronautical spheres. Based on an improved agricultural insurance system, affordability, improving the quality of insurance services, forming an effective insurance market infrastructure, a high degree of trust in insurers by policyholders, diversification of insurance products by special industry, the state's ability to provide real financial support for agricultural production.

scholarly journals Mechanisms of Protection from Interest Rate Risk with Reference to the Life Insurance Market in Montenegro

2018 ◽  
Vol 7 (1) ◽  
pp. 17-42
Author(s):  
Milijana Novović Burić ◽  
Vladimir Kašćelan ◽  
Milivoje Radović ◽  
Ana Lalević Filipović
Keyword(s):  
Risk Management ◽  
Interest Rate ◽  
Life Insurance ◽  
Financial Management ◽  
Financial Stability ◽  
Interest Rate Risk ◽  
Economic Security ◽  
Insurance Market ◽  
Insurance Companies ◽  
Rate Risk

Abstract Insurance companies are facing major challenges that point to the need for control process and risk management. Risk management in insurance has a direct impact on solvency, economic security, and overall financial stability of insurance companies. It is very important for insurance companies to adequately calculate risks to which they are exposed. Asset liability management (ALM), as an integrated approach to financial management, requires simultaneous decision-making about categories and values of assets and liabilities in order to establish the optimum volume and the ratio of assets and liabilities, with the understanding of complexity of the financial market in which financial institutions operate. ALM focuses on a significant number of risks, whereby the emphasis in this paper will be on interest rate risk which indicates potential losses that may reflect in a lower interest margin, a lower value of assets or both, in terms of changes in interest rates. In the above context, the aim of this paper is to show how to protect from interest rate changes and how these changes influence the insurance market in Montenegro, both from the theoretical and the practical point of view. The authors consider this to be an interesting and very important topic, especially because the life insurance market in Montenegro is underdeveloped and subject to fluctuations. Also, taking into account the fact that Montenegro is a country that has been making serious efforts to join the EU, it is expected that insurance companies in Montenegro will strengthen their financial position in the market even using the ALM traditional techniques, which is shown in this paper.

Tools of state regulation of the agricultural insurance market

Ekonomika APK ◽  
2021 ◽  
Vol 321 (7) ◽  
pp. 95-102
Author(s):  
Iryna Artimonova ◽  
Kateryna Tkachenko
Keyword(s):  
Research Methods ◽  
Agricultural Sector ◽  
Practical Experience ◽  
State Regulation ◽  
The State ◽  
Insurance Market ◽  
Practical Significance ◽  
State Support ◽  
Agricultural Insurance ◽  
Agricultural Producers

The purpose of the article is to develop practical recommendations for improving the tools of state regulation of the agricultural insurance market. Research methods. The research was based on general scientific research methods, scientific works of domestic and foreign economists on insurance in the agricultural sector of the economy, regulations and Internet resources. The application of the method of comparison, the monographic method in combination with the method of induction made it possible to systematize and generalize the foreign experience of state support for agricultural producers. Research results. The reasons for the need to improve the system of state regulation of the agricultural insurance market are systematized. The international practical experience of formation of systems of the state support of agricultural insurance is generalized. The normative-legal acts regulating relations in the field of insurance of agricultural products are considered. Emphasis is placed on existing programs to protect agricultural producers from the risks posed by the state. An assessment of the current state of the agricultural insurance market in Ukraine and identified prospects for its development using the tools of state regulation. Scientific novelty. It is proved that agricultural insurance is a new effective tool for state support of farmers in case of risks, which will help improve the economic performance of the agricultural sector of Ukraine. Practical significance. Measures to improve the instruments of state regulation of the agricultural insurance market are proposed. The introduction of state support for agricultural insurance will contribute to the growth of the domestic market of agricultural insurance, which will provide additional revenues to the state budget. Refs.: 13.

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

2021 ◽  
Vol 4 (519) ◽  
pp. 249-256
Author(s):  
N. M. Rubtsova ◽  
◽  
N. H. Radchenko ◽  
N. V. Trusova ◽  
◽  
...  
Keyword(s):  
Current System ◽  
Insurance Market ◽  
Insurance Companies ◽  
Domestic Sphere ◽  
Agricultural Insurance ◽  
Agricultural Producers ◽  
Agricultural Producer ◽  
Insurance Mechanism ◽  
Entire Amount ◽  
Limited Choice

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.

scholarly journals Insurance Sector Development and its Effect on the Financial Markets in Developing Countries: The Case of Kosovo

2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Blerta Haliti Baruti
Keyword(s):  
Developing Countries ◽  
Financial Markets ◽  
Financial Stability ◽  
Research Question ◽  
Financial System ◽  
Insurance Market ◽  
Insurance Companies ◽  
Direct Role ◽  
Main Research ◽  
Insurance Sector

The purpose of this paper is to extract the important factors in the nature of insurance companies and their direct role in the economic and financial system development. This market study aims to analyse the insurance system in Kosovo by determining and then analysing its structure, the degree of concentration of insurance companies on the insurance market, their behaviour towards price, number of participants, companies operating in this market and types of products and services they provide. Our analysis are gathered on statistical and qualitative data through the study of the theories on insurance market development in other countries. Furthermore, for the empirical analysis, we used secondary data from Central Bank of Kosovo, Insurance Companies and Association Insurance of Kosovo. Also, we conducted two surveys. First, we conducted a survey with finance managers from all insurance companies and secondary survey was in general, for people who work. This way we tried to get a better understanding of the issue at hand.  The identification of these factors would enable insurance companies to design policies that tackle the demands of consumers for voluntary insurance policies and at the same time to contribute to financial stability of Kosovo’s economy. At the end we have to come out with conclusions on the main research question: Does Insurance Development affect the Financial Markets in developing countries? The expected outcome is that the insurance sector in Kosovo is an important factor for the further development of the financial system.

scholarly journals ANALYSIS OF THE CURRENT SITUATION OF INSURANCE MARKET AND CREDIT INSURANCE IN RA

World Science ◽  
2018 ◽  
pp. 46-49
Author(s):  
Gohar Voskanyan
Keyword(s):  
The Body ◽  
Insurance Market ◽  
Insurance Companies ◽  
Agricultural Insurance ◽  
Agricultural Credit ◽  
Credit Insurance ◽  
Compulsory Insurance ◽  
The Republic ◽  
The Stability ◽  
Almost All

The Armenian insurance market has undergone major changes in the transition to a market economy. Growth tendencies were observed in almost all insurance indicators. At present, the RA Central Bank is the body overseeing the financial system of RA. The positive shifts in the insurance market are partially conditioned by its activities. The article presents the main directions of the activities of insurance companies in RA. Insurance premiums and insurance indemnities have undergone comparative analysis. In a number of countries the insurance is one of the most important prerequisites for the provision of agricultural loans through which banks try to mitigate their credit risk. Agricultural insurance is not implemented in the Republic of Armenia, which negatively affects the stability and development of the sector. Taking into account the advantages of compulsory insurance and the current socio-economic conditions created in Armenia, the article recommends to implement compulsory insurance of agricultural credits. The necessity of introduction of credit insurance in the RA agrarian sphere has been justified, the reasons of non-implementation of agricultural credit insurance has been raised, and the main results expected when implementing agricultural credit insurance has been presented.

scholarly journals Financial stability analysis and forecasting insurance market of Russia

2021 ◽  
Vol 296 ◽  
pp. 06013
Author(s):  
Mikhail K. Chernyakov ◽  
Olesya V. Usacheva ◽  
Natalia I. Aksenova ◽  
Saidmuktori Mukhtorzada
Keyword(s):  
Stability Analysis ◽  
Financial Stability ◽  
Insurance Market ◽  
Insurance Companies ◽  
Prospective Analysis ◽  
Real Sector ◽  
Loss Ratio ◽  
Insurance Sector ◽  
Debt Burden ◽  
Coefficient Method

The article investigates the influence of various parameters and coefficients on financial stability, groups the factors according to their degree of influence and highlights the most significant for the insurance sector. We assumed the existence of a relationship between financial stability and indicators of debt burden, capital stock for meeting obligations, ratio of receivables and payables, expense ratio and loss ratio. The hypothesis was substantiated by analyzing investment investments of insurance companies in the real sector of the economy using the coefficient method and a prospective analysis of the paradoxical theory of regulation.

Sign in / Sign up

Export Citation Format

Share Document