MACE
Modern Agriculture in Central and Eastern Europe
MACE
Modern Agriculture in Central and Eastern Europe
OPPORTUNITIES AND CHALLENGES IN THE DEVELOPMENT OF AGRICULTURAL INSURANCE SYSTEM IN UKRAINE
The need to revitalize and develop agricultural insurance system in Ukraine is caused by the need in stabilization of production and incomes in the agricultural sector, involvement of agricultural producers in risk management and stimulation of using the technological achievements in agriculture. Since results of agricultural operations depend (more than in any other sector of the economy) on climatic factors and, respectively, are subject to certain risks, which can not be eliminated by economic units, there is need to apply systemic approach to the development of insurance in agriculture. Agricultural insurance, as one of the most efficient ways of risk management, allows to combine interests of the participants of insurance market and the government, which first of all should provide stable economic growth, welfare for its citizens and their social protection. Economic calculations and positive international experience indicate, that the best type of support for the agricultural insurance system is to decrease insurance premiums for agricultural producers through subsidies and to provide reinsurance of risk by the state. In contrast to direct huge state expenditures by the government in case of disaster, such an approach to the organization of state’s support allows to employ market mechanisms in order to reach social goals and, as a result: (1) to use governmental funds more efficiently; (2) to involve agricultural producers to risk management; (3) to provide incentives to the producers regarding use of the best production technologies; (4) to facilitate development and consolidation of the insurance sector; (5) to facilitate the development of agricultural production and stabilization of incomes of agricultural producers. Development of the agricultural insurance system also requires development of other organizations (professional and civil associations, expert groups). In these organizations, the central role belongs to associations of agricultural producers. An individual farmer is deprived of the opportunity to influence the insurance terms, set by insurance companies. So, the most important function of associations of agricultural producers is related to participation in decision making process concerning new insurance products.
insurance, risk management, agricultural producers, agricultural sector
| Name | Value |
|---|---|
| Code | 57zQep9F |
| Date of submission | 8/31/07 7:31:23 PM |
| Assessment | Paper |
| Abstract-Session | Undefined session 2008 |
| Authors | daisy:4714-MACE@main:en |
| Contact person | daisy:4714-MACE@main:en |
| Presenter | daisy:4714-MACE@main:en |
