Identification and interpretation of internal factors influencing the agricultural insurance market in Ukraine

Abstract

The functioning of the agricultural insurance market in Ukraine is an objective reality and a necessity due to the urgent need to create a safe environment for agricultural production. The ability to consolidate financial resources in the field of insurance contributes to increased responsibility for probable risks distributed in space and time, so it is worth considering insurance relations in the agricultural sector. The purpose of the study is to theoretically and methodologically justify the processes of identifying internal factors influencing the further functioning of the agricultural insurance market in Ukraine. The methodological perspective of this study is based on the use of general scientific and specific methods of cognitive activity: abstract-logical, economic-statistical, structuralfunctional, deduction, induction, and formalisation. A panel database was formed for the period 2012-2021 broken down by the regions of Ukraine. The territorial features of changes in the ratio between insured and sown areas in the western, central, eastern, and southern regions of Ukraine are reflected. Based on the results of the conducted modelling (two models are presented simultaneously: a regular model and a one-year lag model), the influence on the insured area of such factors as sown area, yield, gross harvest, and internal price for agricultural products is established. A comparative characteristic of the statistical qualities of the presented models was made using indicators such as “Residual standard error”, “Multiple R-squared”, and “Adjusted R-squared”. The results of the regression analysis showed the statistical significance of certain factors in motivating agricultural commodity producers to participate in the insurance process. The practical value of the proposed measures lies in formulating practical recommendations for enhancing cooperation among stakeholders in the agricultural insurance market during wartime and post-war periods