Dranus Valentyn, Ph.D. (Economics), Associate Professor of the Department of Finance and Credit, Petro Mohyla Black Sea National University, Mykolaiv, Ukraine

ORCID ID: 0000-0001-5617-6740
e-mail: drval8@ukr.net

Burdeina Yelizaveta, applicant for higher education of the second (master’s) level of higher education specialty 072 Finance, Banking and Insurance, Petro Mohyla Black Sea National University, Mykolaiv, Ukraine

ORCID ID: 0000-0002-5988-1696
e-mail: burdeyna.1999.liza@gmail.com

State оf the Art and Trends Development of Agricultural Crop Insurance іn Ukraine

Abstract. Introduction. The low level of insurance coverage of the agricultural sector of Ukraine indicates a great potential for growth in this area and the presence of factors in the crop insurance system that limit its development and require detailed analysis and finding solutions to current problems.

Purpose. The aim of the study is to analyze theoretical approaches and foreign experience in crop insurance to identify ways to minimize the consequences of adverse events, effective organization of crop insurance, which will formulate proposals to improve the quality and quantity of insurance products for farmers in Ukraine.

Results. The reasons for the weak level of insurance development in the agricultural sector are high: high cost of insurance, skeptical attitude towards insurance companies, lack of insurance culture, lack of activity on the part of insurance companies, as a small number offer agricultural clients insurance in general, and in crop insurance in particular. An analysis of the current legal framework in Ukraine, which regulates insurance relations in the field of agricultural production, determined that the definition of “agricultural insurance” is not reflected and not enshrined in the legislation of Ukraine. Theoretical approaches to agricultural insurance are systematized, attempts and consequences of introduction of state support in crop insurance are analyzed, existing approaches to crop insurance are highlighted, their types are compared and compared, advantages and disadvantages are highlighted.

Conclusions. The directions which will promote improvement of a condition of an insurance coverage of a crop of agricultural crops are offered, namely: definition by the state of procedure of the conclusion of insurance contracts and their support; providing full-fledged insurance protection of agricultural producers in order to reduce the negative impact on their financial condition of adverse weather conditions and natural, climatic, environmental, technological disasters; raising the level of insurance culture among agricultural producers and restoring confidence in it; use the benefits of index insurance.

Keywords: insurance; state support; agricultural production; insurance products; natural and climatic risks; plant growing.

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