Agricultural insurance with state support: the interaction of private and public interests

Abstract

The article discusses the features of agricultural insurance with state support. It is noted that there are significant problematic aspects in the developing field. The increased difficult-to-calculate risk of losses of agricultural producers from adverse climatic conditions causes increased risks for the financial stability of insurance organizations engaged in agricultural insurance. The lack of state support in the implementation of insurance (reinsurance) of agricultural risks contributes to the inclusion of restrictive conditions by insurers in agricultural insurance agreements that minimize risks, overstatement of insurance tariffs, and refusals of insurance payment. The most effective is the existing system of agricultural insurance for large farms that have the ability to minimize and prevent losses, which makes it difficult to develop competitive principles in agricultural production, hinders the development of small and medium-sized agribusiness. This is also facilitated by legislative restrictions on preferential insurance of agricultural cooperation entities for which the law doesn’t provide for state support. The article substantiates the causal relationship between the imperfection of the system of state support for agricultural insurance and the problems of a civil nature in this area.