MECHANISM OF INSURANCE IN THE AGRICULTURE OF THE REPUBLIC OF BELARUS AS A FINANCIAL TOOL ENSURING ITS STABLE DEVELOPMENT

The insurance of agricultural risks is the object of close attention and support of the state in many developed countries of the world. Insurance in agriculture has its own peculiarities, often large losses can not be compensated by agricultural producers and insurance companies themselves, therefore, state support for agricultural insurance is required. In addition, state support for agricultural insurance programs, according to the rules of the World Trade Organization, is exempted from obligations on reduction, which is of particular interest to the Republic of Belarus due to plans to join this organization. The article determines some features of efficient mechanism of agricultural insurance and criteria for compliance of agricultural insurance programs with the requirements of the World Trade Organization. Analysis of the existing insurance mechanism in agricultural sector of the Republic of Belarus made it possible to identify the main problems that hinder the development of this tool. In this connection, possible directions for development of insurance mechanism in agricultural sector of the Republic of Belarus with participation of budgetary funds and attraction of additional subjects to it have been worked out. The proposed approaches will allow expanding the list of insured agricultural crops, increasing the amount of state support for agriculture, which, in accordance with the WTO rules, do not fall under reduction obligations, which can positively affect the financial sustainability of agricultural organizations and their activity efficiency. The novelty of these approaches is the use of index insurance principles, consisting in use of regional yield index, previously not used in our republic, but applied in developed countries. Index insurance will allow reducing administrative costs affecting the insurance rate, raise attractiveness of agricultural insurance for insurance companies and its availability for agricultural producers, as well as reduce crop loss risks.

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