ASSESSMENT THE IMPACT OF THE RUSSIAN CENTRAL BANK’S READJUSTMENT OF THE AGRICULTURAL
INSURANCE SEGMENT WITH STATE SUPPORT 

Averin Anton Yur'evich, Senior lecturer, sub-department of economics and finances, Penza State University (40 Krasnaya street,
Penza, Russia), E-mail: prosto-anton@mail.ru
Yunyaeva Rimma Ravil'evna, Doctor of economic sciences, professor, sub-department of economics and finances, Penza State University (40 Krasnaya street, Penza, Russia), E-mail: rimmarav@yandex.ru 

336.565 

10.21685/2309-2874-2017-2-8 

Background. In 2014, in connection with the transition of the insurance market to a centralized level based on common rules and standards, the Central Bank of the Russian Federation carried out extensive reorganization of the agricultural insurance market segment. In this regard there is a need for evaluation of the results of supervisory activities carried out. The main precondition of large-scale supervisory procedures was the state’s intention to reduce the process of uncontrolled use of public funds. In the conditions of shortage of available resources such funds are run through the insurance «scheme» under the trust funding reimbursement of costs of agricultural producers for payment of insurance premiums on contracts of insurance without proper insurance examination. The aim of the study is to determine the priorities of the Russia’s Central Bank’s readjustment mechanism for the insurance market segment in the field of agriculture.
Materials and methods. The study is based on critical evaluation of the quality of the Russian Central Bank’s massive reorganization of the insurance market. The authors used statistical data from three main sources as the information base for analysis: insurance market statistics published on the official portal of the Central Bank, the annual report of the Ministry of Agriculture of the Russian Federation on the status of agricultural insurance with state support, expert assessments of the National Union of Agricultural Insurers. The study was based on methods of comparative economic analysis for evaluation of the implementation of target indicators of development of agriculture in accordance with the parameters of the State program of development of agriculture and regulation of markets of agricultural products, raw materials and food for 2013–2020.
Results. These studies indicate that the implementation of readjustment on the basis of the banking regulation experience the Central Bank of the Russian Federation has failed to take into account the peculiarities of insurance market functioning. Toughening of requirements to participants of the insurance market in 2014-2015 threatened execution of the obligations taken on and has had a negative impact on the level of demand for insurance products. According to the statistical data analysis, large-scale reorganization of the insurance market has led to a sharp reduction in agricultural insurance with state support by 55.5 %, and no state support of 35.5 %. A significant number of insurance companies pending supervisory procedures from the Central Bank of Russia have reduced the volume of concluded insurance contracts in order to avoid falling under the sanctions due to a low level of financial sustainability due to the lack of volume of formed insurance reserves. The reduction is mainly due to a decrease in the proportion of insurance to high-risk customer segments - small agricultural producers.
Conclusions. These studies indicate that the actual purpose of the Central Bank’s actions was to consolidate the insurance market in the interests of certain large insurance organizations. Against the background of the revocation of licences from a number of insurance companies there has been an increase in concentration of the market of agricultural insurance with state support. However, the lack of significant financial capacity in most active insurance companies resulted in a reduction of the amount of agricultural insurance protection by one third and the level of insurance objects coverage by a half in 2015. This has been followed by a decrease in the level of sustainability of the agro-industrial complex to possible consequences of largescale natural disasters and has significantly reduced access to insurance for small agricultural producers. Extensive sanctions enabled the government to continue their formal support to the policy of import substitution of food products at actual reduction in funding of the adjusted insurance market. 

adjustment, Russian Central Bank, agricultural insurance segment, supervisory activities 

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