Agricultural Insurance as a Condition for Sustainable Development of Rural Areas

The agricultural sector is currently the leading link in the Ukraine economy, which largely determines the socio-economic development of rural areas. Agricultural insurance is an effective tool to reduce financial losses in the course of economic activity in agriculture.The aim of the article is to identify trends in the agricultural insurance market in Ukraine, highlight the factors influencing its functioning and on this basis substantiate the directions and prospects for further development of this segment of the insurance market as a condition for sustainable rural development. The following methods were used to implement the tasks: abstract-logical; system analysis; structural and functional; graphic; monograph; comprehensive analysis. In the study of the relationship between insurance premiums and 7 factors of influence, the method of regression analysis was used. According to the simulation results, it is established that by 53.6% the variation in the volume of agricultural insurance premiums depends on the volume of crop production by agricultural enterprises, by 52.5% – on the share of insured area and 92.1% on the average insurance rate. The value of the coefficient of determination according to this model indicates that the variation in the volume of insurance payments for agricultural insurance by 96.4% is determined by the variation of these factors. Factors of low level of distribution of agroinsurance in Ukraine are revealed, which are combined into blocks: factors connected with branch specificity of enterprises; factors related to the activities of insurance companies; natural and climatic factors; institutional factors.The directions of development of the agricultural insurance market in Ukraine are substantiated: first, the creation of mutual insurance companies and cooperatives, which will allow to take into account the specific needs of members of the company; secondly, the resumption of public-private partnerships, which will help the insurance company’s customers to develop a variety of sources of insurance costs, restore confidence in insurance as a tool for risk localization and increase the reliability of insurance compensation in the event of an insured event