Petrenko Olga, Candidate of Economic Sciences, Associate Professor of the Department of Economic Theory and Economics of Enterprises, Odessa State Agrarian University, Odessa, Ukraine

ORCID: 0000-0001-9722-3785

e-mail: leka_m@ukr.net

Institutional Support of Agricultural Market Development

Abstract. Introduction. The article considers the problem of institutional support for the development of the agricultural insurance market in Ukraine. The substantiation of the algorithm of reproduction of dynamic process of institutional development which is offered to be realized in three stages is given: 1) assistance of growth of mutual trust of operating subjects of the agroinsurance market; 2) settlement of consolidated liability of all participants in the insurance process in the agricultural sector; 3) creation of conditions for the functioning of a proper insurance environment in the agricultural insurance market.

Results. Directions of improving the institutional environment of the agricultural insurance market on the basis of systematic coordination of relevant formal (various laws and regulations, insurance conditions, etc.) and informal institutions (insurance culture, moral and ethical values, etc.), effective infrastructure and information support, effective transaction cost management are proposed. domestic insurance companies, synergistic interaction of direct (insurers, insurers and intermediaries) and indirect (governmental and non-governmental institutions) participants in the agricultural insurance process. The key condition for optimal interaction of agricultural insurance market participants is to increase the level of development of its institutional support, focused on the distribution or redistribution of risks and liability in the time lag.

Conclusions. Thus, the process of institutional support for the development of the agricultural insurance market should be considered in terms of algorithmic settlement of insurance interests and opportunities for integration of formal, informal, functional and structural institutions, which are focused on ensuring a culture of providing and consuming agricultural insurance services. Emphasis is placed on the fact that the institutional support for the development of the agricultural insurance market is based on the formation of stable effective demand of potential policyholders for certain insurance services and their direct generation by various insurance companies to timely cover emerging agricultural insurance risks. To promote the sustainability of the agricultural insurance market is its modernization, which focuses on the systematic adoption of strategic measures to organize the reproduction of a proper favorable insurance environment in agricultural insurance.

Keywords: market; agricultural insurance; insurance; agricultural sector; institutiona; development.

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