Study On The Development Of Agricultural Insurance In The Process Of Urbanization

China has become the second-largest agricultural insurance market in the worldafter America currently, and agricultural insurance has played a positive role inpromoting agricultural development. Along with the advancement of Chinesecomprehensively deepen reform and the implementation of urbanization strategy,rural land circulation, WTO rules’ restriction, the effectiveness of fiscal and taxpolicies and other factors, put forward a series of new problems about theconstruction of urbanization and agricultural development. This paper aims to studythe role of financial leverage that agricultural insurance should play, provide moreeffective services for new urbanization construction, and thus as an opportunity toachieve agricultural insurance’s development in quality and efficiency.In recent years, the advancement of urbanization and implementation ofpreferential policies to empower agriculture, have greatly stimulated the enthusiasmof peasants, greatly improved the appearance of agriculture and rural areas. Theincome of farmers, the output of grain, the construction of rural infrastructure andthe development of social undertakings entered the fastest time in history. However,the rural land circulation and population flow brought by urbanization, the persistenteffectiveness of fiscal and tax policies which are helpful for agriculture, the impactof WTO rules on agricultural development are intertwined. This put forwardunprecedented challenges for Chinese agriculture which entered a new stage ofdevelopment. One is the prices of international and domestic agricultural productshang upside down, import quality increasing. Two is due to limitation of WTO rules,which conflict with the current fiscal direct subsidies and tax exemption policy, limited the promotion of agricultural development, and made agricultural supportprotection policy face challenges. Three are the current form of agriculturalproduction and rural land policies, which have made the degree of organization scaleof agricultural production and marketization be low. Four is the main agriculturalprices continue to rise, also the important reason for inflation.Developing agricultural insurance is an important effective measure to solve theproblems existing in agricultural production in China and promote the newurbanization construction. Firstly, agriculture is a typical industry of high risk. Chinais the world’s one of the most serious countries in a handful of agricultural disasters,agriculture insurance is to reduce the uncertainty of effective institutionalarrangements for agricultural production activities. Secondly, agricultural insuranceis not restricted by the WTO subsidy standards as WTO “green box policy”. We cancontinue to use fiscal and tax policies to ensure the stability of farmers’ incomethrough agricultural insurance. Thirdly, agricultural insurance premium form acomplete set of fiscal subsidies, farmers affected by the accident can getcompensation. Compared to the implicit subsidy, this has increased the pertinenceand effectiveness of fiscal policies. Fourthly, to push forward the dual purpose ofpromoting large-scale agricultural production and the development of agriculturalinsurance by the financial leverage of agricultural insurance is conducive topromoting the rural land circulation, promote the establishment of rural collectiveeconomy and cooperative economy organization, improving the organization degreeof agricultural production and marketization.On the basis of further research of urbanization theory, financial developmenttheory, insurance theory and agricultural production theory, this paper has made fulluse of the international urbanization and agricultural insurance developmentexperience, combined with the characteristics of the cycle of agricultural productionand disaster, in order to promote the establishment of a resource-conserving and environment-friendly “Two-type” agricultural production system oriented analysis todiscuss the problem of agricultural catastrophe insurance, agricultural price indexinsurance and agricultural insurance reinsurance, etc. Firstly, agricultural catastropheinsurance mechanism needs to be perfected. In combination with the actual situationof our country’s agricultural development and disasters, the focus is on robust fiscalsubsidies and risk diversification mechanism, and to promote the development ofcatastrophe insurance with policy means. Secondly, the development of agriculturalprice index insurance is insufficient. Facing a large basis risk, reasonable index ismore difficult to determine, the lack of effective demand, the development ofinsurance product is insufficient. Thirdly, the underdevelopment of agriculturalreinsurance. Lack of business entities, single business types, insufficient actuarialtechnology, lack of cooperation platform, and the system is imperfect. Positivedevelopment of catastrophe insurance, price index insurance and agriculturalreinsurance, improving the faculty for agricultural insurance, can effectively solvethe periodic and disastrous problem in agricultural production, stable agriculturalproduction and major agricultural prices.Then, making suggestions for promoting the development of agriculturalinsurance in our country based on the research results. Firstly, adjust and perfect thefunction of administrative guidance of relevant government departments. Perfectpolicy-oriented agricultural insurance legal system and supervision system, toestablish the agricultural insurance fund long-term mechanism of insurance,reinsurance mechanism and agriculture risk linkage guarantee system, realize thesecuritization of catastrophe risk. The second one is raising the business operationlevel of insurance companies. Actively exploring agricultural insurance businessmodel, through the analysis, and combined with the actual situation of our country inthe process of urbanization, this paper argues that the agricultural insurance can beused in the business insurance company management mode based on the government’s support in principle. Commercial insurance companies haveaccumulated valuable experience in agricultural insurance business by making fulluse of existing resources. As long as the government makes use of the relevantpolicies and measures to make up for the shortfall, it can realize the policy objectiveof agricultural insurance totally. Thirdly, expand the effective demand of agriculturalinsurance. Raise awareness of farmers’ insurance consciousness and creditconsciousness, intensify insurance propaganda, and popularize insurance policies.The fourth one is developing the subject of agricultural insurance management.Improve the internal governance mechanism, change management ideas, strengthenthe construction of personnel, and improve operating efficiency, attaches greatimportance to disaster prevention and mitigation. To establish an externalcooperation mechanism, strengthen cooperation with the government, and carry outbusiness cooperation with other financial institutions and learn from foreign maturemarkets. Fifthly, enhance the ability of business innovation. Issuing bonds based onagricultural insurance, and to raise risks model, improve the efficiency of the claims,strengthen technological innovation in insurance claims, and gradually expand theorder of agricultural insurance. The sixth one is developing agricultural insurance topromote rural collective economy and cooperative economy. For the needs of ruralcooperative economic organizations to carry out the agricultural insurance, in theaspects as the premium subsidies, tilting and preferential interest rates, to improvethe ability of agricultural insurance. Use the Internet and mobile terminals,unmanned aircraft, satellite remote sensing application information and high-techmeans to improve the efficiency of scale agricultural insurance claims, strengtheningthe function of disaster prevention of agricultural insurance. Play the financialleverage’s role of agricultural insurance to promote rural cooperative organizationsto be sound and perfect, carry out guarantee insurance of land revenue’s loan,promoting the circulation of rural land, exploring the rural cooperative organization captive business, improving the organizational degree of agricultural production andthe degree of marketization.