ІННОВАЦІЙНІ ПІДХОДИ ДО ВИКОРИСТАННЯ ПОТЕНЦІАЛУ АГРОСТРАХУВАННЯ

This study describes the importance and development of agricultural insurance sector in Uzbekistan. Agricultural insurance sector in Uzbekistan was established with the state initiative and government organizations still play an important role in service provision. However, agricultural insurance functions without state subsidies and about 30 percent of the crops are insured. This is comparatively better result while compared to other countries in the region. However, sectors still has several development constraints which are not discussed in the international literature. Therefore, the objective of this study is to describe the development path and challenges in agricultural insurance market in Uzbekistan. Discussions in the study show that access to favorable credit and very high risk averseness of agricultural producers created demand for agricultural insurance in the country which is functioning without the state subsidies. However, premium rates currently charged seem to be very high when compared neighboring countries who subsidize agricultural products. Furthermore, lack of coverage during the systemic drought years could be considered another challenge constraining further development of insurance market in Uzbek agriculture. Establishment of index insurance market could be considered as an alternative option to provide coverage during the systemic drought years since price of the index-based products lower than multiple crop insurance products.

Formation of a favorable investment environment in the market of agricultural insurance is possible with the organization and use of the business processes by insurance companies to provide insurance protection for farmers. The problem of research is the need to increase the motivation of insurers and policyholders to the implementation of the existing interests of their insurance through the mechanism of activation of business processes in the market of agricultural insurance .The objective of research is to justify modern methods of business process management of the insurer for the rational allocation of risks and responsibilities among all the participants of the insurance process. Methodology of research is based on generally accepted methods and techniques of organization and management, interrelated business processes of the insurer from its design till implementation, based on equivalent financial and economic interests of participants of the insurance market. The research results confirm the need for differentiation of concepts "value" and "utility" in the system of insurance relations, as well as the adaptation of the proposed simulation model for managing business processes for all agricultural insurance entities.

In this article, we introduce price index insurances on agricultural goods. Although these seem similar to derivatives, there are significant differences between price index insurances and derivatives. First, unlike derivatives, there are no entrance barriers for purchasing insurances, making them the risk management tools that are accessible to almost all farmers. Second, since insurances are issued in a certain number for any individual farm, unlike futures, for example, they cannot be used for speculation and are used solely for hedging price risk. Third, unlike forwards, they are heavily regulated and do not default and cause counterparty risk. In addition to all differences (or benefits), such products have just recently been introduced in the agricultural insurance market. In this article, we investigate if there could have been a financially viable market where these products are traded. More precisely, we investigate whether an insurance company can design a portfolio of optimal contracts that gives a higher Sharpe ratio than the financial market index prices (here, FTSE 100 and other three major indexes). To reach the article’s objective, we take three steps, in considering theoretical, practical, and corporation standpoints. In the first step, we show what an optimal contract would look like from the demand side in a theoretical setup and we obtain the optimal contract from the farmers' standpoint. In the second step, by adopting a more practical approach in meeting the Key Performance Indicators requirements set by the market participants (both demand and supply side), we find the optimal policies specifications from the first step, in the market equilibrium. This step also helps to determine some unobservable market parameters like volatility. Finally, by adopting a corporation standpoint we bring our model to the U.K. farm index prices and find an optimal portfolio of the products on products from 10 commodities. We demonstrate that investing in such a business is financially viable, as the optimal insurance portfolio produces a Sharpe ratio that outperforms the FTSE 100 and other major market indexes.

Agricultural Insurance Products in Nepal: Practice and Prospects

This paper uses panel data of 13 cities in Hubei Province, China from 2008 to 2019 to establish a multiple linear regression model with the improved Cobb-Douglas production function, and analyzes the influence of agricultural insurance on grain production in Hubei Province as a whole, in eastern Hubei, and in western Hubei.All of the 3 regression results of the Hubei Province overall model, the eastern model and the western model show that agricultural insurance has a significant positive impact on grain production in Hubei, but the impact is small, and the output elasticity of insurance premiums is only 0.0308.In terms of regional differences, the output elasticity of agricultural insurance in eastern Hubei, which is 0.0314, is smaller than that in western Hubei, i.e., 0.0386.The empirical results indicate that agricultural insurance does have a certain role in guaranteeing grain production in Hubei, but it is very limited.Finally, this paper puts forward some countermeasures in order to cultivate a refined agricultural insurance market, so as to achieve stable agricultural production.

The cross-border integration of agricultural markets is a new field of supply chain management.The agricultural market between Guangdong and Hong Kong always have very strong ties. However, This cross-border market integration is undoubtedly different from the market integration based on the mainland level. This paper regards the cross-border agricultural market between these two different customs zone as the breakthrough point and deeply studies the issues of the integration of agricultural product market between Guangdong and Hong Kong, using the price data from January, 2000 to December, 2009. The results show that the agricultural product market between Guangdong and Hong Kong generally has a tendency of long-term integration, but the short-term integration is far lower than long-term integration. The implement of CEPA is conducive to propel the integration of agricultural product market between Guangdong and Hong Kong. Upgrade level of integration between Hong Kong and Guangdong agricultural markets to cross-border supply chain management efficiency improvement is significant.

This paper analyzes how the agricultural insurance market is adapting to climate change, particularly as extreme weather events become more frequent and severe. We focus on the optimal decision faced by a risk-averse farmer who wants to insure their crop while making savings. They can choose between a traditional loss-based insurance, index-based insurance or a mix of both. By maximizing the farmer’s CARA utility function, we show that in some cases, a mixed insurance strategy is more advantageous than a single contract. In our model, the farmer insures only part of the crop when the market interest rate is strictly positive. Demand for traditional and index insurance depends on their respective prices. Highly risk-averse farmers prefer traditional insurance. A numerical application to the French agriculture sector indicates that mean spring temperature primarily affects winter barley yield and could therefore be the main indicator for index-based insurance design. Insurance simulations using the theoretical model and the estimated results further illustrate these findings.

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.

<p>In 2007 the Chinese Ministry of Finance (CMF) approved the pilot agricultural insurance subsidy program, which tremendously promoted the growth of the agricultural insurance market. However the insurance adoption rate is still low comparing to that of developed countries. The main objective of this paper is to investigate factors most influence growers’ crop insurance adoption decisions. To this end, we adopt a double-bounded dichotomous choice (DBDC) experiment. This bidding experiment is conducted through extensive in-person interviews with over 300 rural households in west China, Szechwan province. By using the maximize likelihood method we empirically estimate the effects of factors such as landholding, income and farming experience on the farm-level crop insurance demand. Results indicate that the majority (53 per cent) of rice growers are willing to pay a high crop insurance premium above ¥10 ($ 1.7). On the other side, about 23 per cent of growers value the crop insurance below ¥2 ($ 0.34). As expected, the effects of landholding, education and income are all positive and statistically significant. However, household size and farming experience adversely affect the insurance adoption decisions.</p>

В умовах нестабільного ринкового середовища зростає роль ефективності управління фінансами підприємств через застосування дієвих фінансових механізмів розвитку підприємств аграрного сектору. Проаналізовано основні фінансові механізми розвитку підприємств галузі сільського господарства, визначено їх особливості та недоліки. Встановлено, що запроваджена система фінансування державної підтримки агропромислового комплексу не забезпечує визначеного на законодавчому рівні сприяння життєдіяльності аграрних підприємств, їх конкурентоспроможності на внутрішньому й зовнішньому ринках, гарантування продовольчої безпеки, посилення соціального захисту сільського населення переважно через недосконалість наявних механізмів та небажання самих аграріїв користуватися ними. Визначено стримуючі фактори кредитування аграрних підприємств та розвитку агрострахування, що унеможливлює поліпшення їх фінансового забезпечення та ефективного управління ризиками в аграрному секторі задля нарощення потенціалу їх динамічного розвитку. Ефективність фінансових механізмів забезпечення розвитку аграрного сектору економіки залежить від правильно сформованої фінансової політики окремо взятого підприємства та держави загалом, що сприяє збігу економічних інтересів аграрного підприємства та держави.

The efficient functioning of agriculture plays an important role in ensuring food security in many countries of the world. Depending on how insurance protection of agricultural producers is carried out, the competitiveness of their financial stability and competitiveness largely depends. Agricultural insurance is one of the most effective ways to combat agricultural risks and at the same time is one of the most difficult for insurance companies. Insurance events related to natural and climatic phenomena can cause significant losses to insurance companies. The use of reinsurance makes it possible to redistribute insurance liability between a large number of insurance companies, which in turn contributes to increasing their financial stability. The active introduction of digital technologies in agriculture allows not only to increase the efficiency of agricultural production, but also helps to reduce the risk of agricultural business. In turn, reducing the riskiness of agricultural business as a result of market competition among insurance companies will reduce the cost of the insurance policy. The state should pay more attention to supporting the use of digital technologies in agricultural production. Traditional subsidizing does not fully encourage agricultural producers to introduce digital technologies at their enterprises. Insurance plays a significant role in stabilizing agricultural production. To a certain extent , it creates conditions for protecting farmers from the onset of adverse weather events . The use of digital technologies in agricultural business contributes to increasing the efficiency of agricultural production and creates prerequisites for reducing the costs of agricultural enterprises for insurance protection.

Abstract. Introduction. The question of the expediency of regulating insurance relations in a transition economy can arise only if the world experience is ignored. Another thing is that the forms and methods, the degree of distribution, the details of such regulation differ depending on the characteristics of the country, the degree of its economic development, national traditions, integration into the world community and other characteristics. To improve the quality of insurance for agricultural producers, it is necessary to form a systematic approach to its development. Agricultural production is a sector of the economy with the highest risk of losses from production and economic activities, because the final result of agricultural production depends not only on compliance with production technology, but also depends on the impact of risks not related to the production process. Purpose. To study the vision of domestic scientists and foreign experience of effective organization in insurance of agricultural producers, which will formulate proposals for improving the quality in insurance of agricultural producers in Ukraine. Prove the feasibility of state participation as one of the main participants in agricultural insurance. Conclusions. To improve the quality of insurance for agricultural producers, it is necessary to form a systematic approach to its development. The systems approach should take into account the interaction between the participants in the insurance process of this area: the state, insurers and agricultural producers. The leading place in the system, based on capabilities and interests, should be occupied by the state, which through the implementation of state policy to support agricultural insurance, should ensure the interconnection of interests of the system and unite their efforts to achieve the system. The current state of development in the agricultural insurance system dictates the need to form a systematic approach to its development, which provides for the definition and legislative design forms of interaction between the three main participants in agricultural insurance - agricultural producers, insurance companies and the state. Therefore, the development of agricultural insurance is impossible without significant state support. Important areas are also - the perfection of information, voluntary participation in insurance, the development of insurance against certain risks. Thus, the main task, in our opinion, is the interest in this type of insurers’ insurance, policyholders and the state.

This paper investigates the current state and prospects of the development of the European IT services market. A detailed analysis of the economic indicators of the IT market in European countries has been conducted. Marketing characteristics of the external market of IT services were considered, in whose formation a leading role belongs to export deliveries. It has been determined that the capacity of the international segment of the IT services market in most European countries increases by an average of 20 % annually, and the share of IT technologies exports in the overall export structure exceeds 8 %. The forecast of changes in the internal market of IT technologies in the post-Soviet countries was analyzed. Based on the results, it was concluded that in the future the capacity of the domestic IT services market could increase and, in 2024, in particular in Ukraine, would exceed the volume of USD 2 billion. The results of studying the level of prices for IT services in the post-Soviet countries suggest that they mainly correspond to the prices for similar services in different groups of European countries (with different material capabilities). That means that for IT service consumers in countries with a low standard of living, price characteristics are not an obstacle to obtaining the highest quality services from domestic or foreign suppliers. The role and importance of personnel support of the information industry, which is key in the formation and development of the IT services market, have been determined. It has been proven that specialists who attained IT education mostly work according to the skills and competencies obtained, which distinguishes them favorably from specialists in other fields. Despite the tendencies of a certain outflow of specialists outside the countries with a low living level, the number of IT specialists is growing progressively in their economies. In many ways, these trends are facilitated by an increase in the number of graduates from specialized educational institutions.

The article explores the modern State and development dynamics of livestock industry of Ukraine, as one of the leading branches in the market. Indicators of production and consumption of livestock farming products are vital when determining the population living standards. Livestock industry is the main source of high quality food products supply, and its products are raw materials for the processing industry. Basing on the above the issue of livestock revival gets exceptionally acute in the country. The article analyzes the current state of livestock products market development in Ukraine and its capabilities in the modern world economic space. The main trends of livestock products export are examined. The share of export in the total amount of livestock production is defined. It is ascertained that the main reasons for the livestock production and export decline are the reduction of the population of livestock of all types: cattle, pigs, poultry, and the lack of State support. Prospective directions for the domestic agricultural products export extension primarily to the EU market are suggested: development of farming as the main component of the competitive domestic agricultural production system, increase of infrastructural projects financing, development of the financial infrastructure of the agricultural sector, improvement of the investment climate in the country. Firstly, the necessity to develop farming as the main component of the competitive domestic agricultural production system. This time formation of an open competitive environment within the whole agricultural market rather than direct financial support to specific agricultural producers, which is so much popular by now in Ukraine, has to be the key direction of livestock farming revitalization. Only in this case the development of farming in Ukraine will lead to the activation of agricultural cooperation and the diversification of agricultural products variety to be potentially exported to the European market. Secondly, a consistent policy of reducing the share of direct subsidies paid as a financial support to the agricultural sector, while increasing the expenses aimed at the implementation of infrastructure projects, especially emphasizing modernization of marketing, transport-logistics and informational infrastructure of agricultural market of Ukraine and its regions. Thirdly, an important tool to stimulate exports of agricultural products from Ukraine and increase its diversification is the development of the financial infrastructure of the agricultural sector. First of all this means the formation of the modern model of financial-credit service supply for agricultural producers based on the introduction of different forms of financial leasing, non-bank credits, agricultural insurance, factoring and venture capital operations in agriculture, etc. Fourthly, intensive implementation of steps to improve the investment climate in most regions of our country, taking into account the specifics of their agricultural production. To do this, it is necessary to create a modern industry for industry direct foreign investment attraction, including the formation of agricultural clusters and agri-technoparks focused on the intensification of modern agricultural technologies transfer to Ukrainian market. Hence, the state and development dynamics of the livestock industry affect not only economic performance of agriculture, but also quality of life, well-being and food security of the population. Especially it is necessary to note the fact that livestock farming satisfies the needs of the domestic food market and current situation in the industry is also directly caused by the problem of declining incomes, which recent years have been falling in connection with the population’s income and paying capacity decrease.

The purpose of this article is to study the experience of financial support of agricultural insurance system of Ukraine. Investigated peculiarities of innovative financial criteria of methodological approaches to the estimation of agrarian insurance methodical provision of process and technologies of agricultural insurance are evaluated. The content and principles of functioning of the mechanism of agricultural insurance are revealed. Methodology. The methodical approaches for determining the target indicators of a comprehensive assessment of the development of the agricultural insurance system and its criterion characteristics are developed. Agricultural insurance is considered an area of insurance that is technically demanding. The state is considered and trends and regularities of insurance development are revealed. An assessment of the suitability of any agricultural insurance service should take into account the production system; asset type; key risk factors that are subject to insurance; location of agricultural land; data availability; the size of the farm; sales channels. The research was based on the use of a systematic approach to the consideration of financial phenomena, on the fundamental positions of economic theory, system theory, the theory of finance, insurance management, etc. The quality in the hypostasis of the philosophical category characterizes the stable property of the phenomenon in the dynamics of its general development. Results. The practice and peculiarities of insurance protection of agricultural commodity producers are traced. The advantages and disadvantages of an assortment of insurance products are determined. The main internal and external factors influencing the mechanism of agricultural insurance have been identified. Practical implications. Deepened scientific ideas about the formation of the insurance policy. Unification is carried out according to different algorithms. This is due to the expediency of unifying the components for which the ranking is from the highest to the lowest. Value/originality. The essence of state support of agricultural insurance is determined. Innovative tariff policy is proposed and possibilities of application of non-traditional agricultural insurance products are revealed. The recommendations for determining the main landmarks and the dominant components of the development of agricultural insurance system development strategies have been formed. The conceptual platform for harmonization of the mechanism of agricultural insurance and improvement of its institutional and infrastructural component is substantiated.