Index Insurance as a Tool to Improve the Russian System of Insuring Risks of Agricultural Organizations with State Support

Abstract

The Russian system of insuring risks of agricultural organizations requires a qualitative restructuring based on the increased responsibility of insurers and state participation. Low rates of developing the system of insuring risks of agricultural organizations with state support require seeking for new forms of insurance in the current conditions. The article points out that the use of the index insurance is currently one of the priority directions for the development of the country's agribusiness in general. An algorithm for creating an index insurance service is presented, the purpose of which is to substantiate the possibility of applying index insurance under the conditions of risky farming. A comparative analysis of the economic efficiency of index insurance of the regional grain crops and insurance of grain crops with state support was conducted. It was concluded that the use of index insurance could be useful for other regions that were identical to Kalmykia in terms of natural and climatic environment. The theoretical results obtained by the author can be considered as one of the priority directions for the development of the theoretical and methodological toolkit for insuring risks of agricultural organizations, can become a theoretical and empirical factual foundation for the formation of scientific grounds for regional economic policy in relation to agricultural organizations based on coordinating the interests of the triad of participants: state authorities, agricultural organizations, insurance organizations, as well as program forecasting and project developments.