We conclude that the implementation of this state support program corresponded
to the interests of agricultural producers and insurance companies. According to the
calculations, partial compensation of the insurance premium at the level of 41-47%
provided an increase in the share of enterprises covered by insurance from 1,6% in
2005 to 8,5% in 2007 and an increase in the share of insured crops from 1,5% to 9.1%
respectively. This contributed to the increase of insurance protection and financial
sustainability of agricultural enterprises. It was determined that the growth of insurance
subsidies for 1 UAH provided an increase in insurance premiums by an average of 2.59
UAH and contributed to the strengthening of the financial situation and the increase of
financial solvency of insurance companies.
The complete refusal to finance the programs supporting the process of insurance
of agricultural enterprises as a result of the financial and economic crisis considerably
slowed the pace of development of the domestic market of agricultural insurance,
which was only at the stage of formation. The main factor of the agricultural insurance
market development since 2009 is the state program of forward procurement of the
Agrarian Fund of Ukraine and the State Food and Grain Corporation of Ukraine. In
2015, 48.5% of insurance premiums came from agricultural enterprises upon program
of financing the Agrarian Fund, in 2016 – 62.4%.
Based on the results of research, it was determined that insurance covers minor,
unlikely risks. This is evidenced by the downtrend of the average premium rate. The
decrease in the average premium rate (up to 2% in 2015) is due to increased
competition between insurance companies and the possibility of providing only
catastrophic losses in the insurance of mortgaged crops for multi-risk insurance with
deductible franchise of 50%.
O. Gamankova notes that the insurance premium should ensure the equivalence
of insurance relations between insurer and insurant, be necessary and sufficient for the
insurer to form an appropriate financial basis for the implementation of commitments.
Low and dumping insurance premiums undermine the financial bases of insurance
companies, lead to their financial insolvency, inability to meet their insurance
commitments [3]. The low level of the insurance premium does not provide the
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