The impact of digital technologies on agricultural insurance

¹ Czech University of Life Sciences Prague, Department of Trade and Finance, Faculty of Economics and Management, Kamycka 129, 16500, Praha - Suchdol, Czech Republic
² Nukus branch of Uzbek state university of physical education and sport, Street Karakalpakstanskaya, 22, Nukus, Uzbekistan
³ Uzbek-Finnish pedagogical institute, Samarqand sh., Spitamen shoh ko'chasi, 166-uy, Samarkand city, Uzbekistan.
⁴ Ternopil Ivan Pului National Technical University, Rus'ka St, 56, 46001 Ternopil, Ukraine
⁵ Odesa Polytechnic National University, Shevchenka Ave, 1, 65044 Odesa, Ukraine

^* Corresponding author: i.i.sokoly@op.edu.ua

Abstract

The efficient functioning of agriculture plays an important role in ensuring food security in many countries of the world. Depending on how insurance protection of agricultural producers is carried out, the competitiveness of their financial stability and competitiveness largely depends. Agricultural insurance is one of the most effective ways to combat agricultural risks and at the same time is one of the most difficult for insurance companies. Insurance events related to natural and climatic phenomena can cause significant losses to insurance companies. The use of reinsurance makes it possible to redistribute insurance liability between a large number of insurance companies, which in turn contributes to increasing their financial stability. The active introduction of digital technologies in agriculture allows not only to increase the efficiency of agricultural production, but also helps to reduce the risk of agricultural business. In turn, reducing the riskiness of agricultural business as a result of market competition among insurance companies will reduce the cost of the insurance policy. The state should pay more attention to supporting the use of digital technologies in agricultural production. Traditional subsidizing does not fully encourage agricultural producers to introduce digital technologies at their enterprises. Insurance plays a significant role in stabilizing agricultural production. To a certain extent , it creates conditions for protecting farmers from the onset of adverse weather events . The use of digital technologies in agricultural business contributes to increasing the efficiency of agricultural production and creates prerequisites for reducing the costs of agricultural enterprises for insurance protection.