IMPROVEMENT OF TARIFF POLICY AT THE AGRICULTURAL CROP INSURANCE

2021 ◽  
Vol 14 (-1) ◽  
pp. 93-100
Author(s):  
S. Onysko ◽  
Y. Tomashevskyi
Keyword(s):  
Crop Insurance ◽  
Agricultural Crop ◽  
Tariff Policy

scholarly journals Development of Agricultural Insurance of Crop Production in Regions of Southern Russia

2020 ◽  
pp. 183-194
Author(s):  
Ekaterina Shkarupa ◽  
Irina Anikina
Keyword(s):  
Crop Production ◽  
Crop Insurance ◽  
The State ◽  
Insurance Companies ◽  
Agricultural Crop ◽  
State Support ◽  
Agricultural Insurance ◽  
National Union ◽  
Mandatory Requirement ◽  
Southern Russia

State-supported agricultural insurance is a financial policy imperative in agricultural development. The purpose of the article is to study the current state of the development of agricultural insurance of crop production carried out with the state support of the regions of Southern Russia in order to determine the possibilities of expansion of its scope and increase of its accessibility. It was concluded that there had been significant changes in the market during the period under review. The article presents the analysis of agricultural insurance on the example of crop production carried out with the state support of Southern Russian regions. After 2014 there was a decrease in the activity in agricultural insurance both by insurers and insured. The dominant reason for a considerable drop in insurance in crop production has been the transformation of forms of state support for agricultural producers since 2017. It is the transfer to a “single subsidy”, which included all types of industry support costs that lead to the inability to pay crop insurance premiums in many regions, in particular South Russia. It should be noted that since 2016 there has been a decrease in the number of insurance copmpanies that have carried out insurance with state support. This was a result of the tightening of control over insurers by the Bank of Russia and the emergence of a mandatory requirement of membership in the National Union of Agricultural Insurers to those insurance companies that insured producers with government support. Thus, the changes of the terms of insurance subsidies became a threat to this form of support. Recently, there has been some modification of this form of support for the industry, and the task of the state is to consolidate this trend. The study concluded that the attraction of more insurance companies to regional markets, involvement of representatives of medium and small businesses in the agricultural risk insurance system, increased flexibility of insurance conditions with state support and improved quality of insurance payment procedures, possibility to independently determine the increasing factor for arable lands, compensatory subsidies written into agricultural crop insurance contracts will facilitate the access to this measure and expansion of this form of support.

scholarly journals Machine learning model for estimating agricultural crop insurance payout based on air temperature, rainfall, and relative humidity

2020 ◽  
Vol 12 (2) ◽  
pp. 165-170
Author(s):  
K.P. Mangani ◽  
R. Kousalya
Keyword(s):  
Relative Humidity ◽  
Air Temperature ◽  
Crop Insurance ◽  
Regression Technique ◽  
Agricultural Crop ◽  
Policy Makers ◽  
Machine Learning Model ◽  
Proposed Model ◽  
Linear Regression Technique ◽  
Combined Indices

Abstract. In Agriculture, the weather-based variations are deliberated to estimate the crop insurance payout. This research model includes linear regression technique (LR) for air temperature payout prediction and fuzzy based choquistic regression (FCR) technique for rainfall payout prediction of agricultural blocks. Then the combined indices of rainfall, relative humidity and air temperature are considered as input to the proposed model named fuzzy based Quasi Poisson Regression technique (FQPR) implementing the multi-indices evaluation function that performs the total payout prediction per hectare of the specified block. The deviations in weather indices determine the insurance payout value with the threshold parameter specified as per policy makers. Thus, the proposed techniques can support the prediction of the total insurance payout with additional weather parameters for the seasonal period of the selected crop for selected five districts with reduced error rate. The results show that the proposed work is appropriate for combining weather indices and predicting the total insurance payout of the groundnut crop of the selected districts.

scholarly journals Agriculture Insurance’s outreach constrained by Procedural delays and Norms: Reflections from North Karnataka, India

2020 ◽  
Vol 1 (1) ◽  
pp. 39
Author(s):  
Nayanatara S. Nayak ◽  
Narayan Billava ◽  
Ashalata K.V.
Keyword(s):  
Central Government ◽  
Crop Insurance ◽  
Insurance Coverage ◽  
Primary Data ◽  
Specific Reference ◽  
Severe Drought ◽  
Agricultural Crop ◽  
Insurance Company ◽  
Crop Failure ◽  
Average Percentage

Karnataka is one of the states, which experienced severe drought continuously for four years since 2014. In addition, heavy rainfall for the past two years has adversely affected agriculture produce in the entire state putting farmers into debt trap as most of them are not covered by crop insurance for crop failure. Although crop insurance was available to farmers in India since 1972, the coverage across the states including Karnataka was not found to be satisfactory. The average percentage of farmers covered under crop insurance was less than 10% during 1999-2015,both for India and Karnataka. It was 11.3% under NAIS 2015 kharif,increased to 12.2% in 2016, 17.1% in 2017 going down to 15.6% in 2018 and to 14.1% in 2019 under Pradhan Mantri Fasal Bima Yojana (PMFBY)kharif in Karnataka. PMFBY was one new kind of agriculture insurance company and introduced throughout the country in 2016.This paper examines the performance of this scheme with specific reference to north Karnataka based on primary data collected from farmers’ survey in four districts, secondary data collected from official documents and first-handinformation gathered from regional stakeholder workshops organized in six selected districts of north Karnataka. The study tries to look into the extent of coverage and, flaws and merits of crop insurance schemes with reference to problems faced by farmers in getting insurance coverage and claims. The study covered around 1000 stakeholders including farmers,officials of banks, department of economics and statistics, agriculture department and insurance agencies, representatives of gram panchayats and cooperative societies. Three agricultural crop seasons have passed since then. Central government has brought in some changes in guidelines and is likely to make further changes in procedures in response to concerns expressed by States and farmers’ representatives. Follow up discussions with key stakeholders in Karnataka held after the initial farmers’ survey reveal that while a few of the anomalies in applying for crop insurance have been addressed by the concerned departments, major obstacles in assessment and claims continue to exasperate farmers who are miffed bythese procedural lapses. This paper throws light on some of these issues and discusses measures to make crop insurance, particularly PMFBY farmers’ friendly.

Willingness to pay for agricultural crop insurance in the northern EU

2014 ◽  
Vol 74 (4) ◽  
pp. 539-554 ◽  
Author(s):  
Petri Liesivaara ◽  
Sami Myyrä
Keyword(s):  
Willingness To Pay ◽  
Crop Insurance ◽  
Arable Land ◽  
Mixed Logit ◽  
Insurance Companies ◽  
Agricultural Crop ◽  
Content Type ◽  
Factors Affecting ◽  
Anchoring Effect ◽  
Split Sample

Purpose – The purpose of this paper is to investigate the demand for crop insurance. Moreover, farmer willingness to pay (WTP) for crop insurance was derived. Factors affecting the demand were also examined in a country where crop insurance products are not currently available. Sensitivity analysis was conducted by studying the price-anchoring effect. Design/methodology/approach – Data from a choice experiment (CE) were analyzed with mixed logit models and the distribution of farmer WTP for crop insurance was derived. A split sample approach with varying premium vectors was used to analyze the price-anchoring effect. Findings – Demand was revealed for crop insurance products in Finland. The demand was higher among younger farmers and farms with more arable land. WTP for crop insurance products was very sensitive to the premium interval presented in the CE design. Research limitations/implications – The price-anchoring effect may disrupt the market development of crop insurance products, because insurance companies may take advantage of the lack of awareness among farmers of crop insurance pricing. Practical implications – The insurance product expected indemnity was a more important factor than the deductible in determining farmer WTP for crop insurance. Therefore, the 30 percent deductible level set for subsidized crop insurance products is not an obstacle for the development of such products in the EU. Originality/value – The study applied a well-known method (CE) to crop insurance in a country where these products are non-existent. The split sample approach was used to examine the price-anchoring effect on crop insurance.

Current models in the field of agricultural crops insurance

2021 ◽  
pp. 127-135
Author(s):  
Nadiia Pysarenko ◽  
Elena Ablova ◽  
Alexander Dudko ◽  
Victor Malyarevsky ◽  
Miroslav Kosyak
Keyword(s):  
Agricultural Production ◽  
Crop Production ◽  
Crop Insurance ◽  
Insurance Companies ◽  
Necessary Condition ◽  
Tariff Policy ◽  
Weather Factors ◽  
Agricultural Insurance ◽  
Reproductive Process ◽  
Insurance Rates

Agricultural production is an important and at the same time the most risky type of economic activity. Its reproductive process is associated with natural and climatic, biological and financial factors, the action of which in many cases is difficult to forgive and control. Crop production is particularly affected by cumulative natural risks. One of the ways to minimize agricultural risks is to use crop insurance as an important means of ensuring the riskiness of agricultural production from probable natural and weather factors. The pricing mechanism for crop insurance services is substantiated, based on the improvement of the insurer’s tariff policy when conducting crop insurance, which is implemented through a system of actuarial calculations and taking into account the peculiarities of insurance in the process of crop production. The possibility for insurance companies to carry out high-quality selection of agricultural risks, stimulating agricultural producers to insure, is analyzed. Actuarial balance has been studied as a necessary condition for improving the tariff policy of crop insurance, which should be based on such principles as: equivalence of insurance relations; admissibility; stability of insurance rates over a long period of time and expansion of insurance liability. The calculation of insurance rates has been improved by taking into account the availability of prices for insurance services, depending on the number of possible risks transferred to insurance and the amount of financial resources accumulated by the insurer, which should be sufficient to reimburse crops under crop insurance contracts. Actuarial balance is identified as a necessary condition for improving the tariff policy of crop insurance. The principles of insurance tariff policy to improve the calculation of insurance rates and the application of actuarial models in the field of crop insurance. Key words: tariff policy, insurance tariff, actuary, actuarial mathematics, actuarial model of agricultural insurance.

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