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.

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 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.

Plant immunity and crop insurance

2021 ◽  
pp. 38-42
Author(s):  
K.A. Zhichkin ◽  
◽  
V.V. Nosov ◽  
L.N. Zhichkina ◽  
◽  
...  
Keyword(s):  
Crop Production ◽  
Climatic Factors ◽  
Plant Immunity ◽  
Spring Barley ◽  
Agricultural Crop ◽  
Agricultural Crops ◽  
State Support ◽  
Weather Factors ◽  
Agricultural Insurance ◽  
Genetic Characteristics

Agricultural insurance with state support (in crop production) creates conditions for stable and effective activity in the cultivation of basic agricultural crops, which is especially important in conditions of uncertain weather factors typical for the risky agriculture zone, which includes the Samara region. Dry summers, frosty winters with a minimum of precipitation make agricultural production largely dependent on natural and climatic factors. The study purpose is to substantiate the need to take into account the characteristics of individual varieties when insuring agricultural crops with state support. It is necessary to solve the following tasks: - to formulate the biological characteristics of individual varieties of agricultural crops; - to classify all emergencies according to the type of impact on plants; - substantiate (using the spring barley example) the need to correct the existing approach when signing agricultural insurance contracts with state support in crop production. When developing an insurance algorithm, it is necessary to take into account the breeding potential of both agricultural crops and individual varieties associated with their genetic characteristics. The widespread use of the achievements of genetics, realized in the form of the formation of plant immunity, makes it possible to achieve a significant degree of resistance to abiotic and biotic factors that have a compensated and uncompensated nature. As can be seen from the presented calculation, it cannot be said that the presence of a variety in the State Register of Breeding Achievements is a prerequisite for its successful cultivation. Therefore, it is necessary for each agricultural crop to identify a number of features, the presence of which makes this variety resistant to the totality of all factors of the given microregion.

scholarly journals Foreign experience in agricultural insurance

2020 ◽  
Vol 36 (4) ◽  
pp. 78-109
Author(s):  
Gordana Radović
Keyword(s):  
Risk Management ◽  
Agricultural Production ◽  
Management Strategy ◽  
18Th Century ◽  
Crop Insurance ◽  
Global Level ◽  
Risk Management Strategy ◽  
Agricultural Insurance ◽  
Agricultural Subsidies ◽  
The Right

The aim of this paper is to present characteristics of agricultural insurance at the global level. Agricultural insurance is most often seen, in a narrower sense, as crop insurance and livestock insurance. This type of economic protection has been applied since the 18th century, and today it is considered a part of a comprehensive risk management strategy in agricultural production. The most significant differences in agricultural insurance, at the global level, are the risks that can be insured in certain countries, as well as whether, or to what extent, agricultural insurance premiums are subsidized by the state. Agricultural insurance in most countries is voluntary, somewhere it is a condition for exercising the right to agricultural subsidies, and it is mandatory only in Greece and Cyprus.

scholarly journals RISKS OF AGRICULTURAL PRODUCTS AND THE NEED FOR INSURANCE IN ARMENIA

2020 ◽  
pp. 25-29
Author(s):  
Hrant Hayrapetyan
Keyword(s):  
Systematic Study ◽  
Agricultural Production ◽  
Climatic Conditions ◽  
Agricultural Products ◽  
Insurance Companies ◽  
Agricultural Insurance ◽  
Agricultural Work ◽  
Insurance System ◽  
The Republic

Agriculture is one of the main sectors of the economy of the Republic of Armenia. The efficiency of agricultural production in the province is mainly due to climatic conditions. For this purpose, first of all, a systematic study should be carried out on the situation in the provinces, the agricultural features of each province, the dangers posed and the agricultural work being carried out. The features of this system are different in different countries, and their study will allow us to find similarities that can be applied in Armenia. Assessing the importance and difficulties of agricultural insurance, it is necessary to introduce an insurance system that equally expresses the interests of both the insured and the insurer. In other words, to neutralize farm risks, insurance companies will not increase their risks, so a reasonable way to balance them is to introduce a state-subsidized agricultural insurance system.

Catastrophic Risk, the Disequilibrium of Agricultural Insurance Markets and Reinsurance - Based on the Data from Hubei

2013 ◽  
Vol 798-799 ◽  
pp. 846-850
Author(s):  
Hui Ru Xing ◽  
Jiang Ping Tao ◽  
Wei Zhao
Keyword(s):  
Agricultural Production ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Markets ◽  
Insurance Risk ◽  
Agricultural Insurance ◽  
The Sustainable Development ◽  
Catastrophic Risk ◽  
Risk Transfer ◽  
Transfer Mechanisms

Catastrophic risk existing objectively in agricultural production is the main cause for the imbalance of the agricultural insurance markets, and to promote the sustainable development of the agricultural insurance, it is necessary to improve the agricultural insurance risk transfer mechanisms. Under the condition of farms and insurance companies expected utility maximum, we develop an agricultural insurance market equilibrium model based on the M-V preference function, and then demonstrate that catastrophic risk leads to the imbalance in the agricultural insurance market. Insurance companies involved in reinsurance arrangements helps rectify the imbalances in agricultural insurance market. Based on this analysis we verify the development of Hubeis agricultural insurance market, and then simulate the reinsurance arrangement of Hubei agricultural insurance. The theoretic and empirical analysis has an implication for the design of agricultural insurance catastrophe risk transfer tools.

Digitalization of Agricultural Production in the Bryansk Region

2020 ◽  
pp. 52-58
Author(s):  
N.D. Ulyanova ◽  
◽  
E.P. Chirkov ◽  
Keyword(s):  
Agricultural Production ◽  
Information Society ◽  
Crop Production ◽  
Digital Technologies ◽  
Animal Husbandry ◽  
Necessary Condition ◽  
Effective Work ◽  
Effective Implementation ◽  
Successful Solution ◽  
Agroindustrial Complex

The article deals with the problem of the forming an information society in the agroindustrial complex at the regional level, as a necessary condition for sustainable development of the country as a whole. Based on the analysis of modern information society development in Bryansk region its connection with the transition to digital economy is established; examples of application of digital technology solutions in crop production and in animal husbandry taking into account the environmental situation in the region are given; the causes hindering their implementation in agricultural production are identified. The necessity of developing specific methods for calculating indicators of the level of application of digital technologies in agricultural production is substantiated. Priority directions for effective implementation of digital technologies in the agroindustrial complex are proposed, the successful solution of which leads to more effective work of the region as a whole.

Do Farmers Value Insurance Against Extreme Droughts and Floods? Evidence from Odisha, India

2020 ◽  
pp. 097215092095761
Author(s):  
Asis Kumar Senapati
Keyword(s):  
Risk Aversion ◽  
Crop Insurance ◽  
Management Strategies ◽  
Probit Model ◽  
Insurance Companies ◽  
Agricultural Insurance ◽  
Insurance Product ◽  
Risk Management Strategies ◽  
Willingness To Purchase

Crop insurance provides farmers with financial support and coverage in the event of extreme natural disasters. Despite more than two decades of disseminating the knowledge in India, crop insurance adoption rates remain low with evidence of dis-adoption. This article assesses farm households’ willingness to insure their crops as well as ability to pay for an insurance product designed to help rural Indian farmers manage flood- and drought-associated risks. The objective of this study is to assess the determinants of farmers’ participation in market-based agricultural insurance living in coastal and rainfed areas prone to risky weather. It is hypothesized that crop insurance would lead to less risk-averse behaviour and more efficient use of farm resources. Using probit model, the study highlights several determinants of willingness to insure and empirically verify the role of risk aversion in insurance purchase decisions. The lottery-choice experiment has been applied by the author for evaluating risk attitudes of sample household. Empirical results suggest that as regards farmers’ risk preferences, risk aversion actually plays an important role even though not directly but in interactive terms with expected losses which, in turn, significantly influencing farmers’ willingness to purchase the insurance product. The study underlines significant influence of insurance history on future crop insurance choice decision. Farmers’ insurance purchase history can help insurance companies, in order to devise effective crop insurance programmes in the future. Similarly, the study also foregrounds the significant role of insured amount in insurance contracts, influencing farmers’ crop insurance purchase decision in both rainfed and irrigated regions. It can therefore help insurance companies to revise the contract items or reform the existing subsidies. Finally, the study goes on to recommend the importance of the knowledge of informal risk management strategies followed by farmers before offering them the formal insurance product and the necessity of the insurance companies in understanding the farmers’ behaviour while designing the insurance product.

scholarly journals METHODICAL APPROACHES TO FORMATION OF TARIFF POLICY IN THE AGRICULTURAL INSURANCE SPHERE

2021 ◽  
Vol 26 (1(86)) ◽  
Author(s):  
Oleksandr Vilenchuk
Keyword(s):  
Economic Feasibility ◽  
Insurance Market ◽  
Insurance Companies ◽  
Tariff Policy ◽  
Agricultural Risk ◽  
Agricultural Insurance ◽  
Agricultural Producers ◽  
Insurance Rate ◽  
Methodological Principles ◽  
Gross Rate

The article substantiates the methodological approaches to the formation of a balanced tariff policy for agricultural insurance services. The outlined approaches are based on methodological principles, which together are focused on achieving holistic guidelines (moral and ethical, socio-psychological, financial and economic) in the relationship between the insurance market stakeholders. The functioning of the insurance protection effective system of agricultural producers while ensuring a sufficient profitability level of insurance operations, requires scientific detail of the pricing mechanism for insurance services. The observance necessity of methodological sequence in the process of actuarial calculations for agricultural insurance services is argued. This sequence involves the following measures: providing access to information sources for assessing agricultural risks and deciding on insurance; processing of statistical data on specific objects of insurance, (in particular, assessing the probability of an insured event and agreeing on key conditions for the transfer of agricultural risks to insurance) the calculation of the full tariff rate (gross rate). The formulated measures are necessary from the standpoint of ensuring information awareness of insurance companies regarding the accepted insurance risks, assessing the probability of insurance risks and possible compensation payments, as well as the economic feasibility of the insurance rate (gross rate) and its components net rate and load. The economic-mathematical interpretation of insurance tariffs related to insurance of natural and climatic risks is carried out. In particular, using actuarial calculations, the rates of insurance tariffs in the insurance of crops (winter wheat, rye, winter barley and rapeseed) for the autumn-winter and spring-summer periods are reflected. The presented calculations can be used by insurance companies specializing in the provision of agricultural risk insurance services. According to the results of the study, the actor’ proposals aimed at ensuring the actuarial balance of stakeholders in the agricultural insurance market are presented.

scholarly journals AGRICULTURAL INSURANCE IN ESTONIA – CURRENT SITUATION AND FARMERS’ WILLINGNESS TO USE CROP INSURANCE

2016 ◽  
Vol 10 (1) ◽  
pp. 122-128 ◽  
Author(s):  
Maire Nurmet ◽  
Katrin Lemsalu ◽  
Anne Põder
Keyword(s):  
Risk Management ◽  
Risk Sharing ◽  
Crop Insurance ◽  
Insurance Companies ◽  
Management Tool ◽  
Agricultural Risk ◽  
Agricultural Insurance ◽  
Production Risk ◽  
Farm Survey ◽  
Willingness To Use

Farmers are strongly exposed to agricultural risks and have to adapt their strategies to the new uncertainties resulting from the changes in the EU agricultural policy. So far, risk sharing strategies in the context of production risk management have received little attention in Estonia. The aim of the paper is to examine the current availability of agricultural insurance in Estonia and the farmers’ attitudes towards insurance as a risk management tool. The analysis is based on a farm survey conducted in 2015. At first, an overview on available insurance products is given. Secondly, farmers’ interest towards insurance and the connection between farm characteristics and the interest, is studied. The results show that availability of agricultural risk management instruments is limited in Estonia. Agricultural insurance includes protection against livestock production risks provided by two insurance companies, and there are no instruments for crop insurance available. The results of farm survey show that farmers’ interest towards crop-yield and crop income insurance is relatively limited. The main reasons cited by the farmers are too high insurance premiums and the lack of trust in the insurance provider honouring the insurance claim. Younger farmers were more interested in insurance.

Sign in / Sign up

Export Citation Format

Share Document