JEL Classification: G22, Q14, Q18, R20, R51.
Pavlenko О., PhD, Associate Professor, Associate Professor of Finance and Banking, Dnipro State Agrarian and Economic University, Dnipro, Ukraine
INSURANCE AS A METHOD OF FINANCIAL SECURITY OF AGRICULTURAL PRODUCERS: CURRENT TRENDS AND WORLD EXPERIENCE
Introduction. The main problems of agrarian producers activity are investigated in the article, it is analyzed the crop area, the volume of their commodity production, financial results, and profitability from operating activities, the main indicators of the insurance market.
Purpose. The aim of the article is determination of insurance as a method of support of financial security of agrarian commodity producers and also providing of them break-even activity by insurance defence of risks that arise up in agriculture.
Results. The author presents the legislative regulation of insurance in agriculture of Ukraine, the economic mechanism and peculiarities of insurance of agricultural production. In the economic mechanism of insurance coverage of agrarian production in Ukraine, the main constituent element is the creation and use of an insurance fund at the expense of voluntary or mandatory insurance premiums of insurers in order to recover unforeseen losses in the economic mechanism of insurance coverage of agrarian production in Ukraine. The role of the state with the support of insurers, insurance associations are determined, establishment of strengthened control and supervision of insurance activities in the agrarian sector, since this particular fate of the economy has advantages over other spheres of production. The systems of creation of insurance funds and the order of guarantee insurance coverage in foreign countries, which offer insurance programs with participation and state support, are reviewed. The methods of insurance for groups of property of agrarian producers, in which there will be a reliable insurance coverage of unforeseen risks, are established.
Conclusions. The conducted research has shown the necessity of creation of an effective system of insurance coverage of agrarian producers in order to ensure their financial reliability in the conditions of integration development of the insurance market.
Keywords: insurance, insurance coverage, insurance risks, insurance market, financial security, farming, agriculture.
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