parameters of the agricultural insurance market in the country; made an estimation of
the initial state, unused resources and threats of activity of agricultural insurance
market participants; outlined the prospects, implementation and practice of agricultural
insurance in Ukraine in the context of sustainable development of the agricultural
sector.
1. The assessment of the agricultural insurance market in Ukraine. The
formation of the agricultural insurance market in Ukraine was carried through the
gradual legal regulation of agricultural risk insurance. In particular, the Law of Ukraine
“On Insurance” (1996) regulates the relations in the field of insurance; the Law of
Ukraine “On Stimulation of Agricultural Development for the Period 2001-2004”
(2001) introduced a partial compensation of insurance payments for compulsory crop
insurance of crops and perennial plantations; the Law of Ukraine “On State Support to
Agriculture of Ukraine” (2004) specifies the peculiarities of state regulation of the
agricultural insurance market; the Law of Ukraine “On the Features of Insurance of
Agricultural Products with State Support” (2012) provides an interpretation of state
support for agricultural products insurance, provides creation of an Agricultural
Insurance Pool (AIP), and grants the right to insure agricultural products with state
support only to insurers who have received a license and are members of AIP.
Estimation of the main parameters of the country's agricultural insurance market
during the last decade shows unevenness and its extremely slow growth rates, a
threateningly low percentage of insured areas (Table 1).
At the end of 2015, insurance covered only 2.3% of agricultural enterprises in the
country. Crop insurance covered 689 thousand hectares, which is only 3.7% of the
sown area. The level of coverage by insurance for individual crops is significantly
different. In 2013, the share of winter wheat in the insured area amounted to 55.1%,
corn - 20.3%, winter rape - 12.5%, sunflower - 4.9%, winter barley - 2.6%, winter rye -
2, 1%, soybeans - 0.1%. In 2015, the share of winter wheat rose to 58.1%, soybeans -
up 6.7%, sunflower - to 6.3%, corn decreased to 8.6%, the share of winter rape and
winter barley remained unchanged.
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