Agricultural Insurance Market Research Articles

Evaluation of claims reserve methods: claims payment pattern and Stanard-buhlmann, case study at prévoir insurance company (agriculture Cambodia)

A claims reserve is money set aside for a claim that has been Reported But Not Settled (RBNS) or Incurred But Not Reported (IBNR). Claim reserves are crucial for the financial stability of insurance companies. Operationally, we can know the amount RBNS, but we don’t know the amount of IBNR. Therefore, actuarial literature has proposed numerous IBNR calculation methods, which are usually based on statistical concepts. However, the mutant and uncertain behavior of insurance environments for each insurance company does not make advisable to use a wide database across all insurance companies in Cambodia when calculating IBNR. As it is not advised by the regulator for any standard methodology of claim reserve calculation and each insurance company must define its own method based on its data and operational procedure. Prevoir (Kampuchea) Micro- Life Insurance in Cambodia, the first Micro Insurance licensed in Cambodia since 2011, has developed its methodology of claim reserve calculation by studying on claim settlement pattern and Stanard-buhlmann method. In this paper, we are going to share evaluation between the two methods after conducting experiment at Previor Insurance company. The Insurance company also operates in the agricultural insurance market.

Aspects of Functioning of Insurance Organizations in the Agricultural Insurance Market of Ukraine

Aspects of Functioning of Insurance Organizations in the Agricultural Insurance Market of Ukraine

Polish system of business insurance in agriculture and related areas during the accession processes and EU membership. Selected aspects. Part II: The period of Poland’s EU membership

The preparation period for Poland’s membership in the European Union, which lasted nearly 15 years and involved both the transposition of EU legislation, including insurance legislation, and the structuring of the national insurance system for the broadly defined agriculture and rural areas, failed (despite the adoption of the European model) to effect changes that would sufficiently help the agricultural insurance system recover from the long-lasting crisis it had faced since 1990. The opportunities offered by the Community policy, related i.a. to the expansion of the insurance portfolio to include modern types of insurance covering various types of risks, as well as the traditional form of risk transfer well-known from earlier periods in the history of Polish insurance, such as insurance mutuality, were not fully utilised either. In the post-accession period, it has been accompanied by a significant expansion of the group of structural tools for agricultural risk management, which extend beyond the area of insurance. The reasons for the structural crisis of business insurance in agriculture and related areas (in the years 1990–2004) lay both in statutory reasons (abolishment of the statutory agricultural insurance system) and mistakes in the implementation of the market insurance model in Poland. The latter were particularly manifested in the dogmatic and selective approach to the underlying principle of systemic freedom of contract in agricultural insurance, with a simultaneous approval of the legal and economic obligation to conclude such contracts in other types of insurance cover. The subject of the issues included in the present study (Parts I and II)2 is the analysis of the establishment and implementation of the insurance model of the indicated sectors against the background of legislation and practice in the unified agricultural insurance market during the implementation of processes preparing Poland’s accession to the European Union (EU) – Part I of the study, and then the implementation of the new insurance system in the market model – Part II of the study. The authors’ analysis of the legal and organisational regulations of the agricultural insurance system in force in the years 2004–2022, taking into account the regulations and other instruments of influence offered/implemented by the EU authorities and institutions, proves and confirms the claim that the negative effects of political and market transformations of the early period of market economy have been evident throughout the entire period of Poland’s membership in the EU to date. These were further aggravated by external natural and social phenomena and a range of internal causes3. The latter, related to the conclusion and execution of insurance contracts, are marked by a profound commercialisation of the contractual relationship and imbalance between the parties to the contracts under civil law (in favour of the supply side), which is characteristic of the liberal economy system. By analysing selected legal acts, available reports and scholarly literature on the subject, as well as drawing on their own experience as participants in the business insurance market in Poland, the authors of the study point first and foremost to systemic and, consequently, organisational solutions as one of the basic sources of the crisis of the business insurance system in Polish agriculture and related areas. In view of the above, the aim of Part II of the study is, therefore, first of all to identify the symptoms of irregularities causing increasing exposure to risk, and located in insurance legal relationships established in the agricultural insurance sector after Poland’s accession to the EU. They invariably demonstrate the need for a continuous modernisation of the system, taking into account both the benefits and the problems associated with common agricultural policy and agricultural risk management in the single European market. Key words: insurance crises, Polish agricultural insurance system, agricultural insurance system in the EU, agricultural insurance, risk management in agriculture.

Identification and interpretation of internal factors influencing the agricultural insurance market in Ukraine

The functioning of the agricultural insurance market in Ukraine is an objective reality and a necessity due to the urgent need to create a safe environment for agricultural production. The ability to consolidate financial resources in the field of insurance contributes to increased responsibility for probable risks distributed in space and time, so it is worth considering insurance relations in the agricultural sector. The purpose of the study is to theoretically and methodologically justify the processes of identifying internal factors influencing the further functioning of the agricultural insurance market in Ukraine. The methodological perspective of this study is based on the use of general scientific and specific methods of cognitive activity: abstract-logical, economic-statistical, structuralfunctional, deduction, induction, and formalisation. A panel database was formed for the period 2012-2021 broken down by the regions of Ukraine. The territorial features of changes in the ratio between insured and sown areas in the western, central, eastern, and southern regions of Ukraine are reflected. Based on the results of the conducted modelling (two models are presented simultaneously: a regular model and a one-year lag model), the influence on the insured area of such factors as sown area, yield, gross harvest, and internal price for agricultural products is established. A comparative characteristic of the statistical qualities of the presented models was made using indicators such as “Residual standard error”, “Multiple R-squared”, and “Adjusted R-squared”. The results of the regression analysis showed the statistical significance of certain factors in motivating agricultural commodity producers to participate in the insurance process. The practical value of the proposed measures lies in formulating practical recommendations for enhancing cooperation among stakeholders in the agricultural insurance market during wartime and post-war periods

Problems of Development of the Agricultural Insurance Market in Ukraine

Insurance is an effective tool for reducing financial risks for agricultural producers. Agricultural insurance allows to ensure a stable income for producers regardless reduce the risk of financial losses in case of negative impact of natural factors. The article explores the issues of agricultural insurance in Ukraine and in foreign countries. The authors analyze various aspects of agricultural insurance, from ensuring the financial stability of farmers to supporting sustainable agricultural development. The purpose of the article is to analyze the current state of agricultural insurance in Ukraine and determine the prospects for its development, as well as to compare the experience of other countries with agricultural insurance. The main scientific results of the study are an analysis of the activities and services of Ukrainian insurance companies, a review of the state support program for agricultural insurance in Ukraine, and a comparison of foreign experience in agricultural insurance in countries such as Germany, the United States, Canada, Spain, and Poland. The article uses scientific methods of analysis, synthesis and generalization to study the theoretical and practical aspects of the problem of agricultural insurance in Ukraine and the world. An analysis of foreign experience in this area was also conducted. The article examines the concept of "agri-insurance". A detailed analysis of the activities and services of the Ukrainian insurance companies ASKA, Universalna, Persha Insurance, and UPSK is carried out, and it is concluded that agricultural products are most often insured in Ukraine, and less often machinery and animals. The foreign experience of agricultural insurance in Germany, the USA, Canada, Spain and Poland is studied, their differences are identified, and the goal is to ensure the financial stability of farmers and support sustainable agricultural development, although each country uses different mechanisms to support agricultural insurance. The program of state support for agricultural insurance, which is currently being implemented by the Ukrainian government, is considered. The draft order "On a standardized insurance product for insurance of winter grain crops with state support against agricultural insurance risks for the entire period of cultivation" is analyzed. The study identifies prospects for the development of the Ukrainian agricultural insurance market, including the development of the insurance market, expansion of insurance coverage, use of the latest technologies, and development of new insurance products. The study is original in nature, as the authors consider the issue of agricultural insurance in a comprehensive manner and draw attention to its importance for the sustainable development of agriculture. The results of the study can be applied in decision-making practice for the development of agricultural insurance in Ukraine.

Functional roles of the insurance broker in the agricultural insurance market

In modern conditions, the agricultural sector is one of the most risky branches of economy. Every year, farmers face significant losses due to various natural disasters, diseases and other factors that negatively affect their productivity. That is why insurance has become one of the most important tools that help farmers reduce their risks and maintain stability in the industry. However, in order for the insurance to be effective, it is necessary to choose the right insurance product and the company that provides such services. This is where insurance brokers come to the rescue, having the necessary knowledge and experience to help clients find the best solutions. One of the main functional roles of an insurance broker in the agricultural insurance market is to help clients choose an insurance product. Brokers must be familiar with all types of insurance that exist in the market and have an understanding of their advantages and disadvantages. They must be ready to provide clients with professional advice and recommendations on choosing the optimal insurance product, taking into account the specifics of business and the risks that may arise. In addition, insurance brokers play an important role in interaction with insurance companies. They should have a good relationship with the leading insurance companies and be aware of their offers and terms. This allows brokers to find the best conditions for their clients and negotiate optimal insurance conditions. Also, insurance brokers provide their clients with professional support and consulting throughout the entire insurance period. They help with the preparation of documents, conduct negotiations with insurers, ensure compliance with the terms of the insurance contract, help resolve disputes and other problems. In addition, insurance brokers play an important role in improving the agricultural insurance system as a whole. They provide insurance companies with feedback on customer reactions to insurance products and conditions, which allows them to improve and adapt them to customer needs. So, we can conclude that insurance brokers play an important role in the agricultural insurance market. They help clients find the best insurance products, provide them with professional support and advice, and contribute to the improvement of the insurance system as a whole. Therefore, choosing an insurance broker in the agricultural insurance market is an important step for farmers and other participants in this industry.

Flexible Weather Index Insurance Design with Penalized Splines

In this article, we propose a flexible framework for the design of weather index insurance (WII) based on penalized spline methods. The aim is to find the indemnity function that optimally characterizes the intricate relationship between agricultural production losses and weather variables and thus effectively improves policyholders’ utilities. We use B-spline functions to define the feasible set of the optimization problem and a penalty function to avoid the “overfitting” issue. The proposed design framework is applied to an empirical study in which we use precipitation and vapor pressure deficit (VPD) to construct an index insurance contract for corn producers in Illinois. Numerical evidence shows that the resulting optimal insurance contract effectively enhances policyholder’s utility, even in the absence of the government’s premium subsidy. In addition, the performance of our proposed index insurance is robust to a variety of key factors, and the general payment structure is highly interpretable for marketing purposes. All of these merits indicate its potential to increase efficiency of the agricultural insurance market and thus enhance social welfare.

The insurance system in AIC: advantages, structure, mechanisms

The market of agricultural products, raw materials and food is of great importance for the development of economy of the Republic of Kazakhstan. Its main purpose is to meet the needs for food. The protection of interests of agricultural producers cultivating grain, oilseeds, vegetables from the consequences of adverse natural conditions will be ensured by organization of insurance activities in crop production. The aim – is to evaluate modern system of voluntary insurance in crop production section of Kazakhstan and develop recommendations for its improvement. Methods – statistical, structuring of processed information, causal and comparative data analysis. Results – reducing the risks of economic entities from emergencies due to the increased amount of insurance of the sown area in the republic will make it possible to increase the amount of financing for agricultural entities, and additional resources will be directed to the effective functioning of AIC. Within three years, the country will diversify production of crop products by expanding the area of arable land occupied by agricultural crops. The study of foreign and domestic experience made it possible t o identify shortcomings in modern approaches to the system of voluntary insurance services and offer recommendations for improving methods of their application. Currently, public and private sectors are interested in the continuous expansion of agricultural insurance market in Kazakhstan. The standard for subsidizing part of insurance premium in agricultural sector has increased, which, in turn, will reduce cost of insurance policy for agricultural producers and make this resource even more accessible. Conclusions – positive aspects of modern mechanism of agricultural insurance include: availability of cost of insurance; guaranteed insurance payments; introduction of digital technologies; simplified scheme for recognition of insured events. However, it should be noted that not all existing risks are covered by insurance. To solve this problem, it is necessary to further improve the system of agricultural risk insurance.

Mission of International Agribusiness Insurance: Modern Challenges and Opportunities for Ukraine

An urgent problem today is the reproduction of a sustainable ability to meet the demand for food products in different countries of the world. The solution to this global problem lies in the search for optimal financial and economic tools for timely counteraction to agricultural risks. Many years of international experience prove that such a tool is insurance. The purpose of the study is to conceptualise the mission of international agribusiness insurance, specify modern challenges, and identify opportunities for Ukraine. The methodology of this study was based on the use of various methods, in particular: abstract and logical, epistemological, comparative, structural and functional, modelling, formalisation, induction and deduction, regression and system analysis. The uniqueness of insurance lies in its ability to accumulate the necessary financial resources and distribute them to the needs of compensation for losses in the case of insurance events distributed in space and time. Consequently, the conducted research is aimed at substantiating the mission of international agribusiness insurance, identifying current challenges and existing opportunities in Ukraine. The main advantages and disadvantages of various models of interaction of stakeholders in the international agricultural insurance market are established. The paper highlights the world experience in positioning classic and index insurance products on the market. It was found out that the current level of agribusiness insurance in Ukraine does not correspond to its potential opportunities. Based on the parameters of the constructed regression model, it is established that the basis for further expansion of insurance coverage of agricultural risks is an increase in the number of concluded and renegotiated agricultural insurance contracts, an increase in the liability limit (insurance amounts) of companies, ensuring actuarial balance, and an increase in the amount of state subsidies. The practical implementation of these measures should be considered in the context of food security at the regional, national, and global levels

Agricultural Insurance Market Analysis: Regional Aspect

To date, one of the priority tasks of the development of the agro-industrial complex is the formation of a mechanism for the timely identification, prevention and prevention of various entrepreneurial risks associated with the activities of agricultural producers. Insurance is the most effective tool for effective management and mitigation of adverse effects of various types of agricultural risks. The article presents the results of the study of the functioning of the mechanism of agricultural insurance with state support, as well as the impact of agricultural risks on the level of financial stability of agricultural producers. An analysis of the current financial condition of agricultural organizations of the Stavropol Territory was carried out, the financial results of their activities, measures of state support for farmers were considered. The classification of insurance risks, the methodology for calculating insurance premiums, insurance programs are considered. The subject of the study is a risk system at the level of agricultural producers. The information base was the official data of the Federal State Statistics Service, the Central Bank of the Russian Federation, statistical information on the implementation by members of the NSA of agricultural insurance carried out with state support. The scientific novelty of the study consists in the development and systematization of mechanisms for reducing the risks of agricultural producers.

Agricultural insurance market in Russia

Agricultural insurance market in Russia

State regulation and the main ways to support the development of agricultural insurance in Russia and in foreign countries

In our work on the basis of economic literature, statistics and scientific works in periodicals, we analyzed the international experience of conducting agricultural risk insurance in other countries, special attention was paid to issues of state support for this industry. As a result of the study, we identified the features of conducting agricultural insurance abroad, which can be further adapted to the conditions of the Russian insurance market and applied in order to improve and develop the mechanism of agricultural insurance in our country. The article also examined the dynamics of the main economic indicators of the development of the agricultural insurance market with state support. The main indicator of market development is the share of insured sown areas and livestock of farm animals. The dynamics of these indicators over the past six years has shown that the level of agricultural insurance protection in our country is at a low level, despite the fact that in 2019 there was a positive trend to the world average indicators is still very far away. Much attention was paid to indicators characterizing the level of state support for this industry in our country. As a result of research, it was determined that the agricultural risk insurance system lacks budget funds, and its development directly depends on the amount of funding. It should also be noted that large agricultural producers are mostly involved in the insurance process, and for small-scale farming, the proposed insurance products are mostly inaccessible due to the high cost. Further, the main problems of the development of the agricultural insurance mechanism were identified and directions for improving the state support system for this industry were outlined.

Agricultural Insurance as a Condition for Sustainable Development of Rural Areas

The agricultural sector is currently the leading link in the Ukraine economy, which largely determines the socio-economic development of rural areas. Agricultural insurance is an effective tool to reduce financial losses in the course of economic activity in agriculture.The aim of the article is to identify trends in the agricultural insurance market in Ukraine, highlight the factors influencing its functioning and on this basis substantiate the directions and prospects for further development of this segment of the insurance market as a condition for sustainable rural development. The following methods were used to implement the tasks: abstract-logical; system analysis; structural and functional; graphic; monograph; comprehensive analysis. In the study of the relationship between insurance premiums and 7 factors of influence, the method of regression analysis was used. According to the simulation results, it is established that by 53.6% the variation in the volume of agricultural insurance premiums depends on the volume of crop production by agricultural enterprises, by 52.5% – on the share of insured area and 92.1% on the average insurance rate. The value of the coefficient of determination according to this model indicates that the variation in the volume of insurance payments for agricultural insurance by 96.4% is determined by the variation of these factors. Factors of low level of distribution of agroinsurance in Ukraine are revealed, which are combined into blocks: factors connected with branch specificity of enterprises; factors related to the activities of insurance companies; natural and climatic factors; institutional factors.The directions of development of the agricultural insurance market in Ukraine are substantiated: first, the creation of mutual insurance companies and cooperatives, which will allow to take into account the specific needs of members of the company; secondly, the resumption of public-private partnerships, which will help the insurance company’s customers to develop a variety of sources of insurance costs, restore confidence in insurance as a tool for risk localization and increase the reliability of insurance compensation in the event of an insured event

Инструменты экономического регулирования развития АПК на современном этапе

The article is devoted to the analysis of certain basic instruments of economic regulation of the development of agriculture at the present stage – pricing policy, lending, insurance. The authors emphasize that prices and price relations in the agro-food market do not fully ensure the balanced functioning of agricultural producers. Despite a slight slowdown in the pace of price growth in the agro-industrial complex observed in the period from January to August 2022, a more systematic approach to stabilizing the price situation is required. Additional measures are needed to ensure the profitability of producers, the balance of supply and demand. In terms of improving the lending system, it is necessary both to increase the volume of concessional lending and increase the volume of its state support, and to restructure the structure of lending and investments with priority investments in promising areas. In addition to supporting large businesses, backbone enterprises need institutions and mechanisms for lending to small businesses. The volume of the agricultural insurance market remains narrow, the coefficients of compensation for damage are at a suboptimal level, the funds of state subsidies are used inefficiently. It seems advisable to create a state insurance company that will provide insurance to agricultural producers with state support, and to amend legislation to improve insurance techniques.

Analysis of systemically significant changes in the legal framework of the agricultural insurance market with state support

Analysis of systemically significant changes in the legal framework of the agricultural insurance market with state support

Financial and economic evaluation of agricultural insurance market in Ukraine

Purpose. The purpose of the article is to diagnose the financial and economic conditions of the agricultural insurance market in the context of transformational changes, which allows identifying the dependences of variables among the indicators of insurance in Ukraine.
 Methodology / approach. The final goal of diagnosis is to build models that describe the variables and allow assessing the impact of some insurance indicators on the number of insurance contracts, which allows conducting regression of projected and observed values among insurance indicators during 2005–2019. The direct selection was also applied, which allowed starting without variables in this model by checking the addition of each variable with the use of the selected criterion of conformity of the model; as well as the repeatedness of this process until the best state of the model.
 Results. The modelling results allowed us to determine that among the insurance indicators in the agricultural insurance market, the dependent variable is the indicator of the number of insurance contracts. As a result of the regression, it was stated that for the dependent variable the USD / UAH exchange rate and the subsidy, mln UAH, have a significant impact on the number of insurance contracts. Less importance had the area, thousand hectares, and the remaining variables did not determine such an impact. The obtained regression value of the predicted and observed value stated an adequate model, as the slope of the regression line is 45°.
 Originality / scientific novelty. The novelty is improvement of the diagnostic algorithm for assessing trends in the agricultural insurance market in terms of transformational changes, taking into account the regression which made it possible to establish the dependences of variables among insurance indicators; validity of the use of direct selection with repeatedness of which the best possible state of the model is achieved.
 Practical value / implications. The comparison of the studied insurance indicators in the agricultural insurance market allowed determining the relationship between variables with the separation of their weight, which affect insurance contracts, which confirms the adequacy of the application of diagnostics which will be used during the evaluation of insurance contracts at enterprises of the agricultural insurance market.

Інституціональне забезпечення розвитку агрострахового ринку

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. Strategic 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.

Claim Assessment Models in Crop Insurance

Agricultural insurance is considered one of the engines of the development of the agricultural industry. Without a developed of agricultural insurance market, farmers cannot manage their risks to protect their investments, which leads us to say that, in this context, the modernization of the agricultural industry will not succeed. Investments in technology to modernize agriculture in order to increase productivity are very important, and in order to have stability, there must be tools on the insurance market to protect farmers. The larger the insurance market, the more diversified protection instruments exist as options for the farmers. In order for the insurance market to be able to develop and come to farmers with diversified products, the involvement of the state with different financing measures / schemes is needed. At the international level, depending on each country, the state is involved with different schemes. The more the state is involved, the more developed the insurance market is, which led to an increase in the well-being of the agricultural sector. The impact on the insurance market was not only in diversifying the protection instruments but also in reducing their cost. This has led to the possibility for farmers to transfer to the insurance market several types of risks at sustainable costs. Starting from the importance of the way in which a claim assessment is performed, in this paper we propose to make a comparative study between a classical method of claim assessment in the case of agricultural crops and a modern method of assessment based on satellite data/images. The comparative analysis aims to highlight the impact of different methods in establishing the final value that the farmer is going to collect from the insurer.

Інструменти державного регулювання ринку агрострахування

The purpose of the article is to develop practical recommendations for improving the tools of state regulation of the agricultural insurance market. Research methods. The research was based on general scientific research methods, scientific works of domestic and foreign economists on insurance in the agricultural sector of the economy, regulations and Internet resources. The application of the method of comparison, the monographic method in combination with the method of induction made it possible to systematize and generalize the foreign experience of state support for agricultural producers. Research results. The reasons for the need to improve the system of state regulation of the agricultural insurance market are systematized. The international practical experience of formation of systems of the state support of agricultural insurance is generalized. The normative-legal acts regulating relations in the field of insurance of agricultural products are considered. Emphasis is placed on existing programs to protect agricultural producers from the risks posed by the state. An assessment of the current state of the agricultural insurance market in Ukraine and identified prospects for its development using the tools of state regulation. Scientific novelty. It is proved that agricultural insurance is a new effective tool for state support of farmers in case of risks, which will help improve the economic performance of the agricultural sector of Ukraine. Practical significance. Measures to improve the instruments of state regulation of the agricultural insurance market are proposed. The introduction of state support for agricultural insurance will contribute to the growth of the domestic market of agricultural insurance, which will provide additional revenues to the state budget. Refs.: 13.

Factors influencing and dynamics of the agricultural insurance market

The article is aimed at identifying modern features of insurance in the agricultural sector of the Ukrainian economy and defining the factors of influence on the agricultural insurance market. The article discloses interpretation of the terms of «insurance» and «agricultural insurance» and also presents the types of possible risks arising in the activities of agricultural enterprises. The performance indicators of leading insurance companies in the field of agricultural insurance are analyzed. The current state and dynamics of insurance of agricultural risks, which arise both in the field of crop production and in livestock, are researched. This will allow predicting the future prospects of the market for insurance services and products, as well as finding possible optimal ways to solve the problems of product insurance, faced by the agricultural producers. The main factors influencing the efficiency of the insurance market in the agricultural insurance sector are allocated. The basic principles of insurance of agricultural products with the State support are analyzed. It is defined that the further development of agricultural insurance should be directed towards creating a profitable and safe environment for all participants in the agricultural market, which provides for the distribution of risks between agricultural producers, processing enterprises, banks, insurance companies and the State. The agricultural insurance of risks creates possibilities for advantageous harmonizing the interests of participants in the agricultural insurance market and the State as a party whose first priority is to ensure stable economic growth.