Agricultural insurance in Russia: transformation of the mechanism and assessment of impact on support for agricultural producers

This article examines the impact of changes in the mechanism of crop insurance with government support on insurance protection for crop production in Russia from 2013 to 2023. Agriculture plays a strategic role in the country’s economy; however, over 70% of arable land is located in risky farming zones vulnerable to natural and man-made disasters. This underscores the need for effective insurance mechanisms to ensure the stability and financial sustainability of agricultural producers. The analysis showed that the introduction of the unified subsidy mechanism in 2017 led to a 48.3% reduction in the number of regions participating in the insurance program and a 90.2% decrease in the crop insurance market by the end of 2018. Regional authorities prioritized measures with a direct impact on productivity, which reduced the attractiveness of agricultural insurance. Intervention by the National Union of Agricultural Insurers and the Ministry of Agriculture in 2019 helped restore the program. Flexible insurance conditions were introduced, the range of insurable risks was expanded, insurance rates were reduced, and government support increased. As a result, by 2023, the crop insurance market grew 7.6 times, the number of insured producers increased nearly tenfold, and the number of concluded insurance contracts rose by 10.8 times. The research results confirm the critical role of government support and adaptive policy in agricultural insurance in ensuring the sustainable development of crop production and Russia’s food security.