The insurance system in AIC: advantages, structure, mechanisms

The market of agricultural products, raw materials and food is of great importance for the development of economy of the Republic of Kazakhstan. Its main purpose is to meet the needs for food. The protection of interests of agricultural producers cultivating grain, oilseeds, vegetables from the consequences of adverse natural conditions will be ensured by organization of insurance activities in crop production. The aim – is to evaluate modern system of voluntary insurance in crop production section of Kazakhstan and develop recommendations for its improvement. Methods – statistical, structuring of processed information, causal and comparative data analysis. Results – reducing the risks of economic entities from emergencies due to the increased amount of insurance of the sown area in the republic will make it possible to increase the amount of financing for agricultural entities, and additional resources will be directed to the effective functioning of AIC. Within three years, the country will diversify production of crop products by expanding the area of arable land occupied by agricultural crops. The study of foreign and domestic experience made it possible t o identify shortcomings in modern approaches to the system of voluntary insurance services and offer recommendations for improving methods of their application. Currently, public and private sectors are interested in the continuous expansion of agricultural insurance market in Kazakhstan. The standard for subsidizing part of insurance premium in agricultural sector has increased, which, in turn, will reduce cost of insurance policy for agricultural producers and make this resource even more accessible. Conclusions – positive aspects of modern mechanism of agricultural insurance include: availability of cost of insurance; guaranteed insurance payments; introduction of digital technologies; simplified scheme for recognition of insured events. However, it should be noted that not all existing risks are covered by insurance. To solve this problem, it is necessary to further improve the system of agricultural risk insurance.

1. Zakon Respubliki Kazahstan «O gosudarstvennom regulirovanii razvitija agropromyshlennogo kompleksa i sel'skih territorij» ot 8 ijulja 2005 goda No66. [Electronic resource].2005.URL: https://adilet.zan.kz/rus/docs/Z050000066 (date of access: 07.09.2022) [in Russian].

2. Nacional'nyj proekt po razvitiju agropromyshlennogo kompleksa Respubliki Kazahstan na 2021-2025 gody. [Electronic resource].2021.-URL: https://adilet.zan.kz/rus/docs/P2100000732 (date of access: 07.09.2022) [in Russian].

3. Pravila subsidirovanija strahovyh premij, utverzhdennye prikazom Ministra sel'skogo hozjajstva Respubliki Kazahstan ot 19 maja 2020 goda No172. [Electronic resource].2020.URL: https://online.zakon.kz/Document/?doc_id=32598514. (date of access: 17.08.2022) [in Russian].

4. Pravila razrabotki i utverzhdenija strahovyh produktov, utverzhdennye Ministrom sel'skogo hozjajstva Respubliki Kazahstan ot 14 maja 2020 goda No170. [Electronic resource]. 2020.

5. Mahul O., Stutley Ch. J. Government Support to Agricultural Insurance: Challenges and Options for Developing Countries. World Bank [Electronic resource]. – 2010. – Available at: URL: https://openknowledge.worldbank.org/handle/10986/2432 (date of access: 07.09.2022)

6. Agricultural Policy Monitoring and Evaluation 2013: OECD Countries and Emerging Economies. – is the online library of te Organisation for Economic Cooperation and Development: OECD Publishing, 2013. – pp. 34.

7. Niklas Möhringa, Tobias Dalhausb, Geoffroy Enjolrasc, Robert Fingera Crop insurance and pesticide use in European agriculture // Agricultural Systems Volume 184, September 2020, 102902. Available at: https://www.sciencedirect.com/science/article/pii/S0308521X20307630 (date of access: 07.09.2022)

8. Lukicheva E.A. Agrostrahovanie: mirovoj opyt //Sel'skohozjajstvennye vesti – 2019. – Jelektronnyj resurs]. URL: https://agri-news.ru/zhurnal/2019/32019/agrostraxovanie-mirovoj-opyit [in Russian].

9. G. Enjolras, F. Capitanio, F. Adinolfi The demand for crop insurance: combined approaches for France and Italy. Agricultural Economics Review. – [Electronic resource]. 2012. pp. 523.-URL: https://ageconsearch.umn.edu/record/253490

10. Pawłowska-Tyszko, J.; Soliwoda, M. Agricultural insurance vs. economic and financial sustainability of farms. Prace Naukowe Uniwersytetu Ekonomicznego we Wroclawiu [Electronic resource] 2017.-URL: https://www.researchgate.net/publication/323011201_Agricultural_insurance_vs_economic_and_financial_sustainability_of_farms (date of access: 07.09.2022)

11. Verezubova T.A., Muhitbekova A.M. Sravnitel'nyj analiz modelej agrostrahovanija v Belarusi i Kazahstane // Problemy agrorynka. 2018. – No3. S. -141-148 [in Russian].

12. Oficial'nye dannye Cifrovoj platformy dlja biznesa Qoldau.kz razdela AgroInsurance [Jelektronnyj resurs].-2020. Available at: https://agro-insurance.qoldau.kz/ru/insurance-product (date of access: 07.09.2022) [in Russian].