Annotation

Insurance is one of the most effective elements of the financial system, which should protect the property rights and interests of economic entities in agriculture. Since agricultural production largely depends on climatic conditions that significantly affect the volume and quality of crops, the urgent need for insurance of crops against unfavorable weather and climatic conditions becomes an urgent task. According to the analysis of the basic methods of insurance of agricultural crops, it is found that it is expedient to use the insurance method, based on weather indices. Using that method, it is possible to insure the yield of agricultural crops from adverse natural and climatic phenomena, taking into account the influence of natural properties. The use of weather indices for insurance of crops has a number of advantages over traditional insurance products. First, weather conditions have a significant impact on crop yields, and traditional insurance products with their disadvantages do not fully meet the needs of agricultural enterprises in insurance coverage. Secondly, the use of weather indices will increase the insurance coverage of agricultural producers, as it is easier and more comprehensible than other insurance products. Thirdly, it will reduce the administrative costs of monitoring and assessing of losses, and therefore, will reduce this insurance due to higher levels of insurance and standardization of contracts. It is necessary to make the further research on the distribution of enterprises by risk classes according to the values of weather indices. It would allow insurance companies to calculate insurance premiums and payments more effectively while implementing the insurance relations in this segment of the market.