Study On Forest Insurance System Efficiency And Its Influential Factors In China

In order to realize the sustainable development of forest insurance business and establish an efficient system of forest insurance system, a research should be conducted deeply on the basis of forest insurance system in view of different parties and the risk level of different regions. The research on the efficiency of the current system will not only realize equality and be efficient within the different disaster level, the diverse insured parties and insurance companies, but also reflects the efficiency of using government subsidy. In addition, it also facilitates to design diversified insurance contract on the basis of disaster level, the diverse insured parties and insurance companies in order to determine the limit of government subsidy. It is meaningful and constructive to improve and develop the current forest insurance system.Current domestic forest insurance research focuses on descriptive analysis and the demand of forest farmers on forest insurance focuses on empirical research. But the research on forest insurance efficiency is not much available. On the basis of the reason, the thesis conducted the empirical research on the efficiency of current forest insurance system and found out the main factors on forest insurance system and their corresponding effects based on the calculation of forest insurance efficiency. The research will provide reference on how to revise current forest insurance system. Firstly, the thesis applied data envelopment analysis and analytic hierarchy process to calculate the efficiency of forest insurance system and determined the main factors of the efficiency of forest insurance system; secondly, on the basis of the previous research on the efficiency on the forest insurance system, the thesis used the principal component analysis and cluster method. to determine the regional level of forest risk and discussed its effect on efficiency of the forest insurance system; thirdly, the method used on the analysis of the insured party was the logistic method to find the main factors and to analyze their relevance and discussed its effect on efficiency of the forest insurance system; fourthly, multinomial linear regression model was used to find the main factors on the solvency of insurance company and further discussed the main factors of the effects on solvency.The article made the following conclusions:firstly, the current forest insurance system had some advantages but also exists some problems after analyzing the status of disaster and forest insurance system based on the normative method. It is necessary to determine whether the current forest insurance system in China is efficient or not and to analyze the main factors. Secondly, based on thetheory of efficiency, the thesis used Data Envelopment Analysis and calculated the efficiency on forest insurance system twice and found out the current forest insurance system not in the optimal status. In order to find out the way to improve the efficiency of current forest insurance system, the thesis used Analytic Hierarchy Process to determine the major influential factors on the efficiency of current forest insurance system through the specialists’ scoring. The results show three main influential factors of the current forest insurance efficiency that are level of risk, the insured party and the insurance company. Thirdly, the unit of risk categorized into four scales, including the highest level of disaster zone, the.higher level of disaster zone, middle level of disaster zone, and the low level of disaster zone through the evaluation and analysis of disaster situation. Based on the situation of provinces with a longer forest insurance experience and the evaluation on the disaster condition, the thesis categorized Hunan province as the riskiest level, Yunnan province, Guangxi province and Sichuan province as the middle level of risk, Guangdong province and Liaoning province as the lowest level of risk. The research on main diverse forest disaster and the level of disaster zones provide theoretical guidance on how to decide the different forest insurance rate and how to improve the efficiency on the forest insurance system. Fourthly, the main factors on the willingness of the insured party were the familiarity of the forest insurance policy and the manufacturing of the forest land based on the calculation and analysis on the questionnaire survey of Jiangxi province. These factors directly have great impact on the willingness of purchasing forest insurance and further influence the efficiency on the forest insurance system. Lastly, the main factors on the efficiency of forest insurance system on the perspective of insurance company are how to design the suitable forest insurance premium rate, to increase the growth rate of insurance income and rate of investment return and adequacy of unsettled reserves, and decrease the operating expense of forest insurance.