Mission of international agribusiness insurance: Modern challenges and opportunities for Ukraine

Abstract

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

Keywords

• agricultural insurance
• agricultural risks
• market stakeholders
• insurance interests