Assessment of the Effectiveness of State Support for Insurance in Agriculture in Russia

Abstract

Introduction. Risk insurance is the most important financial instrument that ensures the sustainable development of agriculture. The specifics of the implementation of agricultural risks (the unpredictable nature of the onset and the significant intensity of the impact on the activities of agricultural producers) determines the increased interest in this area of support for agriculture from the state. The purpose of the article is to assess the effectiveness of state support in the field of agricultural risk insurance in Russia. Materials and Methods. The authors analyzed the reports of the Ministry of Agriculture of the Russian Federation, as well as the National Union of Agricultural Insurers, characterizing the dynamics of development and the effectiveness of state support in the field of insurance of risks in agriculture. To assess the effectiveness of state support for agricultural producers when concluding an insurance contract, the following algorithm was used: first, an analysis of the achievement of planned indicators of agricultural insurance with state support; second, an analysis of the impact of the size of government funding for insurance on the financial results and financial sustainability of agricultural producers; third, the correlation analysis of the closeness of the relationship between the main indicators of insurance with indicators of financial results and financial stability of agricultural producers. Results. The analysis of the dynamics of the development of agricultural insurance with government support in Russia, as well as the contribution of government subsidies to the financial result of agricultural producers is carried out. On the basis of correlation analysis, there is a tight link between insurance indicators such as insurance coverage and insurance indemnity and indicators of financial results and financial sustainability of agriculture. Discussion and Conclusion. The results obtained indicate a significant impact of government financing of insurance risks in agriculture on the development of the industry. The results of the study could be used by public authorities and Governments in formulating development strategies and agricultural insurance programs, developing appropriate financial instruments for State support for agricultural producers.