IDEAS home Printed from https://ideas.repec.org/a/ags/areint/314163.html

Financial and economic evaluation of agricultural insurance market in Ukraine

Author

Listed:
  • Ivashkiv, Iryna
  • Korol, Svitlana
  • Lyashenko, Oksana
  • Sadovska, Iryna
  • Nadvynychnyy, Sergiy

Abstract

Purpose. The purpose of the article is to diagnose the financial and economic conditions of the agricultural insurance market in the context of transformational changes, which allows identifying the dependences of variables among the indicators of insurance in Ukraine. Methodology / approach. The final goal of diagnosis is to build models that describe the variables and allow assessing the impact of some insurance indicators on the number of insurance contracts, which allows conducting regression of projected and observed values among insurance indicators during 2005–2019. The direct selection was also applied, which allowed starting without variables in this model by checking the addition of each variable with the use of the selected criterion of conformity of the model; as well as the repeatedness of this process until the best state of the model. Results. The modelling results allowed us to determine that among the insurance indicators in the agricultural insurance market, the dependent variable is the indicator of the number of insurance contracts. As a result of the regression, it was stated that for the dependent variable the USD / UAH exchange rate and the subsidy, mln UAH, have a significant impact on the number of insurance contracts. Less importance had the area, thousand hectares, and the remaining variables did not determine such an impact. The obtained regression value of the predicted and observed value stated an adequate model, as the slope of the regression line is 45°. Originality / scientific novelty. The novelty is improvement of the diagnostic algorithm for assessing trends in the agricultural insurance market in terms of transformational changes, taking into account the regression which made it possible to establish the dependences of variables among insurance indicators; validity of the use of direct selection with repeatedness of which the best possible state of the model is achieved. Practical value / implications. The comparison of the studied insurance indicators in the agricultural insurance market allowed determining the relationship between variables with the separation of their weight, which affect insurance contracts, which confirms the adequacy of the application of diagnostics which will be used during the evaluation of insurance contracts at enterprises of the agricultural insurance market.

Suggested Citation

  • Ivashkiv, Iryna & Korol, Svitlana & Lyashenko, Oksana & Sadovska, Iryna & Nadvynychnyy, Sergiy, . "Financial and economic evaluation of agricultural insurance market in Ukraine," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 7(3).
    • Handle: RePEc:ags:areint:314163
    DOI: 10.22004/ag.econ.314163
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/314163/files/3_Ivashkiv_article.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.314163?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dercon, Stefan & Hill, Ruth Vargas & Clarke, Daniel & Outes-Leon, Ingo & Seyoum Taffesse, Alemayehu, 2014. "Offering rainfall insurance to informal insurance groups: Evidence from a field experiment in Ethiopia," Journal of Development Economics, Elsevier, vol. 106(C), pages 132-143.
    2. Benjamin Collier & Jerry Skees & Barry Barnett, 2009. "Weather Index Insurance and Climate Change: Opportunities and Challenges in Lower Income Countries," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 34(3), pages 401-424, July.
    3. H. Holly Wang & Jesse B. Tack & Keith H. Coble, 2020. "Frontier studies in agricultural insurance," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 45(1), pages 1-4, January.
    4. Fahad, Shah & Jing, Wang, 2018. "Evaluation of Pakistani farmers’ willingness to pay for crop insurance using contingent valuation method: The case of Khyber Pakhtunkhwa province," Land Use Policy, Elsevier, vol. 72(C), pages 570-577.
    5. Ephias Makaudze, 2018. "Malawi's Experience with Weather Index Insurance as Agricultural Risk Mitigation Strategy Against Extreme Drought Events 1," Chapters, in: Philip John Sallis (ed.), Extreme Weather, IntechOpen.
    6. Isaboke, H. N. & Zhang, Q. & Nyarindo, W. N., . "The effect of weather index based micro-insurance on food security status of smallholders," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 2(3).
    7. Fahad, Shah & Wang, Jing & Hu, Guangyin & Wang, Hui & Yang, Xiaoying & Shah, Ashfaq Ahmad & Huong, Nguyen Thi Lan & Bilal, Arshad, 2018. "Empirical analysis of factors influencing farmers crop insurance decisions in Pakistan: Evidence from Khyber Pakhtunkhwa province," Land Use Policy, Elsevier, vol. 75(C), pages 459-467.
    8. King, Michael & Singh, Anuj Pratap, 2020. "Understanding farmers’ valuation of agricultural insurance: Evidence from Vietnam," Food Policy, Elsevier, vol. 94(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad Abrar ul Haq & Jayendira P. Sankar & Farheen Akram & Muhammad Siddique, 2022. "The role of farmers’ attitude towards their resources to alleviate rural household poverty," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(4), pages 2133-2155, August.
    2. Aditya Kusuma & Bethanna Jackson & Ilan Noy, 2018. "A viable and cost-effective weather index insurance for rice in Indonesia," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 43(2), pages 186-218, September.
    3. Anita Mukherjee & Shawn Cole & Jeremy Tobacman, 2021. "Targeting weather insurance markets," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 88(3), pages 757-784, September.
    4. Fahad, Shah & Inayat, Tahira & Wang, Jianling & Dong, Li & Hu, Guangyin & Khan, Sufyanullah & Khan, Aaqil, 2020. "Farmers’ awareness level and their perceptions of climate change: A case of Khyber Pakhtunkhwa province, Pakistan," Land Use Policy, Elsevier, vol. 96(C).
    5. Aditya Kusuma & Bethanna Jackson & Ilan Noy, 2018. "A viable and cost-effective weather index insurance for rice in Indonesia," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 43(2), pages 186-218, September.
    6. Feier Yan & Fujin Yi & Huang Chen, 2024. "Effect of education on crop insurance knowledge: evidence from a RCT in China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 17(1), pages 1-21, September.
    7. Stoeffler, Quentin & Opuz, Gülce, 2022. "Price, information and product quality: Explaining index insurance demand in Burkina Faso," Food Policy, Elsevier, vol. 108(C).
    8. Budhathoki, Nanda Kaji & Lassa, Jonatan A. & Pun, Sirish & Zander, Kerstin K., 2019. "Farmers’ interest and willingness-to-pay for index-based crop insurance in the lowlands of Nepal," Land Use Policy, Elsevier, vol. 85(C), pages 1-10.
    9. Fahad, Shah & Wang, Jianling, 2018. "Farmers’ risk perception, vulnerability, and adaptation to climate change in rural Pakistan," Land Use Policy, Elsevier, vol. 79(C), pages 301-309.
    10. Muhammad Irshad Ahmad & Hengyun Ma, 2020. "Climate Change and Livelihood Vulnerability in Mixed Crop–Livestock Areas: The Case of Province Punjab, Pakistan," Sustainability, MDPI, vol. 12(2), pages 1-31, January.
    11. Xiao Lin & W. Jean Kwon, 2020. "Application of parametric insurance in principle‐compliant and innovative ways," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 23(2), pages 121-150, June.
    12. Michael R. CARTER & Alain de JANVRY & Elisabeth SADOULET & Alexandros SARRIS, 2014. "Index-based weather insurance for developing countries: A review of evidence and a set of propositions for up-scaling," Working Papers P111, FERDI.
    13. Narangerel Ganbold & Shah Fahad & Hua Li & Tumendemberel Gungaa, 2022. "An evaluation of subsidy policy impacts, transient and persistent technical efficiency: A case of Mongolia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(7), pages 9223-9242, July.
    14. Awel Y. & Azomahou T.T., 2015. "Risk preference or financial literacy? Behavioural experiment on index insurance demand," MERIT Working Papers 2015-005, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    15. Meike Will & Jürgen Groeneveld & Karin Frank & Birgit Müller, 2021. "Informal risk-sharing between smallholders may be threatened by formal insurance: Lessons from a stylized agent-based model," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-18, March.
    16. Md. Monirul Islam & Shusuke Matsushita & Ryozo Noguchi & Tofael Ahamed, 2022. "A damage-based crop insurance system for flash flooding: a satellite remote sensing and econometric approach," Asia-Pacific Journal of Regional Science, Springer, vol. 6(1), pages 47-89, February.
    17. Annan, Francis & Datta, Bikramaditya, 2022. "Risk, informal institutions, and index insurance," Journal of Environmental Economics and Management, Elsevier, vol. 113(C).
    18. Shaolong Zeng & Bingying Qi & Minglin Wang, 2022. "Agricultural Insurance and Agricultural Economic Growth: The Case of Zhejiang Province in China," IJERPH, MDPI, vol. 19(20), pages 1-21, October.
    19. Miraj Ahmed Bhuiyan & Mkhitaryan Davit & Zeng XinBin & Zhang Zurong, 2022. "The impact of agricultural insurance on farmers’ income: Guangdong Province (China) as an example," PLOS ONE, Public Library of Science, vol. 17(10), pages 1-20, October.
    20. Mengmeng Qiang & Manhong Shen & Guanjun Xia, 2023. "The effectiveness of weather index insurance in managing mariculture production risk," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(2), pages 245-262, April.

    More about this item

    Keywords

    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:areint:314163. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://are-journal.com/are .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.