კონფერენცია

∘ Orkhan Muqabil oglu Bayramov ∘
Some features of insurance in agriculture at the present stage of development of the economy of Azerbaijan

In many advanced economies, insurance is the key way to manage all sorts of risks. But in Azerbaijan today, due to various subjective and objective reasons, this tool is used in entrepreneurial practice insufficiently. This makes it necessary and relevant to study the theoretical basis of insurance more deeply. In addition, a methodological base for insurance should be developed and concrete mechanisms of the insurance business substantiated. These mechanisms should be introduced into the practice of the functioning of business entities, regardless of the branch of the economy.

The article reveals the specificity of agricultural insurance in its close relationship with the features of the functioning of the agrarian sphere. The author outlines five main features, among which we can mention: the use of land as the main means of production in agriculture; lack of a fully functioning market, agricultural land and their mortgage lending; the interrelation of the production process in agriculture with the natural processes of development of living organisms and natural phenomena; necessity of accumulation for insurance of risks not only financial resources, but also material resources in kind; as well as the disparity of prices for industrial and agricultural products. Thus, after reviewing and analyzing the specifics of the agrarian sector, the author outlines the main features of insurance in agriculture at the present stage of development of the Azerbaijani economy.

Author comes to the conclusion that insurance of agricultural production should be given the most important place among the numerous measures to maintain the stability of the agricultural sector. On the one hand, it serves as a significant addition to the activities to reinforce the country's agriculture, together with increased land fertility, land reclamation and other measures to increase the productivity of the agricultural sector. But, on the other hand, insurance in the agricultural sector is of paramount importance in maintaining the level of prices and income levels of the population. Insurance, providing enterprises-producers with protection against losses in the event of physical loss of crops from various risks, also positively affects the development of the process of stabilizing agricultural production, making it more efficient and large-scale.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Orkhan Muqabil oglu Bayramov ∘ Some features of insurance in agriculture at the present stage of development of the economy of Azerbaijan In many advanced economies, insurance is the key way to manage all sorts of risks. But in Azerbaijan today, due to various subjective and objective reasons, this tool is used in entrepreneurial practice insufficiently. This makes it necessary and relevant to study the theoretical basis of insurance more deeply. In addition, a methodological base for insurance should be developed and concrete mechanisms of the insurance business substantiated. These mechanisms should be introduced into the practice of the functioning of business entities, regardless of the branch of the economy. The article reveals the specificity of agricultural insurance in its close relationship with the features of the functioning of the agrarian sphere. The author outlines five main features, among which we can mention: the use of land as the main means of production in agriculture; lack of a fully functioning market, agricultural land and their mortgage lending; the interrelation of the production process in agriculture with the natural processes of development of living organisms and natural phenomena; necessity of accumulation for insurance of risks not only financial resources, but also material resources in kind; as well as the disparity of prices for industrial and agricultural products. Thus, after reviewing and analyzing the specifics of the agrarian sector, the author outlines the main features of insurance in agriculture at the present stage of development of the Azerbaijani economy. Author comes to the conclusion that insurance of agricultural production should be given the most important place among the numerous measures to maintain the stability of the agricultural sector. On the one hand, it serves as a significant addition to the activities to reinforce the country's agriculture, together with increased land fertility, land reclamation and other measures to increase the productivity of the agricultural sector. But, on the other hand, insurance in the agricultural sector is of paramount importance in maintaining the level of prices and income levels of the population. Insurance, providing enterprises-producers with protection against losses in the event of physical loss of crops from various risks, also positively affects the development of the process of stabilizing agricultural production, making it more efficient and large-scale.