THEORETICAL AND METHODOLOGICAL PRINCIPLES OF FORMING THE AGRARIAN INSURANCE MARKET IN UKRAINE

Riskiness in agrarian production calls forth the necessity of well-timed localization and effective neutralization of the phenomena and processes that negatively affect the process of agricultural production. The paper grounds the expediency of developing an insurance system as an efficient instrument of risk management in the agrarian sphere. The purposes of this article is the substantiation of theoretical and methodological approaches and the application of present-day methodology of forming the agrarian insurance market in Ukraine for providing effective insurance protection and creating favourable business environment in the agrarian sphere. The trends of the development of the domestic agrarian insurance market in 2005-2013 point out the necessity of intensifying research activity concerning the optimization of the forms and methods of innovative insurance protection of agrarians. The realization of the potential of the agrarian insurance development in Ukraine will make it possible to essentially reduce the negative effect of risks on agricultural production and ensure the minimization of fluctuations in revenues of agrarians.