Insurance Principles as a Methodological Basis for the Formation of Insurance Relations in the Agricultural Sector of the Economy
Authors:   Uman national university of horticulture, Prokopchuk О.T. 
Published: January 2021

The specificity of the agrarian production process is associated with numerous risks of various species, which leads to a special formation of relationships between the subjects of the agro-insurance market, which should be based on certain specific principles. The functioning of the agricultural insurance market and, accordingly, the formation of a system of insurance relations in the agricultural sector of the economy is based on certain principles that determine the basis for the functioning of the subject composition of the agricultural insurance market in the context of financial, economic, organizational and legal components. Compliance with fundamental insurance principles ensures the possibility of achieving a balance of property interests of participants in insurance relations. The substantive basis of insurance principles regulates the value system of key subjects of the insurance market when concluding agricultural insurance agreements. In this context, it should be noted that knowledge of the insurance methodology requires an unambiguous interpretation of the essence of the principles of the latter, which is the basis for the formation of insurance relations in the agricultural sector of the economy. Consequently, insurance principles are the basis of insurance activities accompanying all stages of the insurance process, starting with pre-contractual relations, then continuing to support contractual relations and ending with participation in their post-contractual types. In essence, the principles of agricultural insurance make it possible to properly coordinate the professional activities of participants in the agricultural insurance market, aimed at neutralizing the risks of various types of population, reflecting the fundamental principles that provide appropriate conditions for the implementation of the interests of all participants in the specified market in the context of both social and economic types. According to the results of the study, the fundamental (basic) insurance principles are classified into three main groups: first — the principles used as the basis of the process of organizing and conducting insurance activities (group of basic insurance principles); second — for risk management of insurance companies (group of additional insurance principles); third — to include special clauses in insurance contracts (group of selective insurance principles). In addition, a set of principles are highlighted that are specific and function in agricultural insurance, forming a methodological basis for the development and distribution of insurance relations in the agricultural sector of the economy, to which, according to the research results, the following principles are attributed: voluntary participation, mutual interest, tariff justification, food security, subsidies and financial stability. This systematization will allow to properly coordinate the professional activities of participants in both the insurance market and its agricultural insurance segment aimed at neutralizing the risks of various species.