State Support of Agro-Insurance of Agricultural Risks in the Market of Goods Derivatives of Ukraine
Государственная поддержка агрострахования сельскохозяйственных рисков на рынке товарных деривативов Украины
2020-03-31
SCID: 54.1/pwmncqer
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agricultural risk insurancecommodity derivatives marketforward grain purchasesmulticriteria risk differentiationstate-supported agro-insurance
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Abstract (AI)
The article deals with the model of state support for insurance of agricultural risks in the market of goods derivatives of Ukraine. Derivative instruments of agricultural risk allocation in the agricultural asset portfolio are identified, as well as compensation methods for insurance coverage of agricultural enterprises" production costs on forward purchases. A multicriteria model of insurance differentiation of agricultural risks is proposed, which allows ensuring their distribution in the portfolio of insurance coverage of agricultural assets and at the same time optimizing the expected profitability of agricultural enterprises, taking into account, the conditions of state support. The projected value of the portfolio of insurance coverage of agricultural assets under state support has been determined by combining the efforts of agro-insurance entities and state-owned companies focused on the guaranteed performance of forward purchases of agricultural enterprises’ grain. Subsystems of agro-insurance objects with state support of the portfolio of insurance coverage of assets of agricultural enterprises have been developed and modified, with basic and additional factors of external macro- and microenvironment of the system.
Key Findings
1
A multicriteria risk-differentiation model distributes agricultural risks across insurance portfolios while optimizing expected enterprise profitability under state-support conditions.
2
It proposes compensation methods for insuring agricultural enterprises’ production costs associated with forward purchases.
3
The article identifies derivative instruments for allocating agricultural risks within Ukrainian agricultural asset portfolios.
4
The projected insurance-coverage portfolio value is determined by combining agro-insurers with state-owned companies guaranteeing agricultural enterprises’ grain forward purchases.
5
The study develops and modifies subsystems for state-supported agricultural-asset insurance portfolios, incorporating external macroeconomic and microeconomic factors.
Research Object
State-supported agricultural risk insurance in Ukraine’s agricultural goods-derivatives market, including agricultural enterprises’ asset and grain-forward-purchase portfolios
Research Subject
State-supported allocation, differentiation, compensation, and portfolio optimization of agricultural risks and insurance coverage, including the projected profitability and performance of forward purchases under macro- and microenvironmental factors
Publication Details
Publication Date
2020-03-31
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