MODELING OF TRANSACTION COSTS IN ECONOMIC SYSTEMS OF LAND USE
Transaction costs of the insurer in the scientific literature are considered as a set of costs associated with the fulfillment of obligations assumed (payment of insurance indemnities), as well as the costs of maintaining administrative and managerial personnel, management costs and general economic expenses. The nature of transaction costs in the agricultural insurance market is determined by the act of economic interaction between the subjects of the insurance process. Transaction costs in agricultural insurance arise during the implementation of underwriting measures in relation to insurance coverage in crop and livestock production; development and implementation of insurance products on the market with appropriate marketing support; preparation, conclusion and maintenance of agricultural insurance contracts, as well as service for policyholders; implementation of institutional, infrastructural, information and communication links. The largest share of transaction costs in the structure of the total costs of the insurer, of course, is occupied by insurance indemnity payments (up to 80%). The specifics of this group of expenses of the insurer is that they are exclusively assumed and depend on the manifestation of agricultural risks. Transaction costs are managed through the insurer's tariff policy. The gross rate (insurance rate) should be an instrument of compromise between the willingness of the policyholder to pay for insurance coverage and the ability of the insurer to provide an equivalent insurance service. Reduction of transaction costs in agricultural insurance is possible provided that the insurance contract is executed in good faith by all subjects of the insurance process, compliance with economically justified insurance rates, timely reinsurance of agricultural risks, and the like.