The model
Characteristics of the model
subsidies are returned to the relevant budgets. Coverage of agricultural
insurance – 85%.
Switzerland. Insurance of agricultural crops (voluntary) is provided by
one insurance company, of animals (compulsory) – by 27 companies.
Insurance coverage of animals from an accident, mortality – through
private companies; from epidemics, diseases – only through state
companies. Support only from the regional budget when an epidemic
occurs (in the presence of an insurance policy).
Minimum
state
participation
in the
insurance
system
Germany. Agricultural producers pay the full value of the insurance
policy. Individual risks are insured because of a high cost of multi-risk
insurance. Compensation to producers in the case of epidemics or
diseases of animals (50% of the rate on the head of the cattle, if it is
insured).
Source: developed by authors on the base of [7]
The experience of developed countries shows that subsidizing the value of an
insurance premium is the best tool for supporting agricultural producers’ incomes and
economic stability in agriculture, while direct state compensation for catastrophic
losses is ineffective in the long run.
The analysis confirms the prospect of establishing a private-public partnership in
agricultural risk insurance with the support of the state in Ukraine. Among the main
features of the private-public partnership as a legal model of cooperation between
agribusiness and the state in the field of insurance and organizational-institutional
mechanism for its implementation, we distinguish: the formalization and the equitable
relationship; the presence of common goals and directions; co-investing resources;
distribution of risks and expenses between the participants (insurers, insurants and the
state).
The systematization of the functional authorities and benchmarks of each subject
of these relations in the model of private-public partnership in insurance of agricultural
risks with state support was carried out in Fig. 1
The establishment of the Agricultural Insurance Pool in 2012 as the only center
of the risk management program of government procurement of grain, Agrarian fund
and monitoring the implementation of the program of state support to agricultural
- 86 -