The Research On Institutional Improvement Of Policy-related Forest Insurance In China

In 2003, for the main purpose of clarifying the use right of woodland and forest property, the new collective forest right reform provided a great opportunity for the development of forest insurance in China. In order to implement the strategic deployment of the Party Central Committee and the State Council and alleviate the contradiction between supply and demand of forest insurance and local financial pressure, Ministry of Finance People's Republic of China has made Fujian, Jiangxi and Hunan be the pilot provinces of premium subsidies since March 2009. To July 2011, nine provinces (autonomous region) have been incorporated into the pilot scope. The intervention of central government finance makes forest insurance be rapidly developed in China.In this study, two types of typical investigation and sampling survey were used during the field investigation of policy-related forest insurance in Fujian, Jiangxi and Hunan. On this basis, the paper summarized the main problems of policy-related forest insurance practice in the three provinces by three aspects of government, insurance company and peasant, after elaborating the development course and present situation of forest insurance in China. And this paper concluded that straightening the relationship of government intervention and market operation would be the key to solve those problems. Meanwhile, based on literature research and field survey, from the perspective of governmental institution supply, using the methods of theory and empirical analysis, comparative analysis, qualitative and quantitative analysis and so on, this article cleared the national policy objective about forest insurance and deeply analyzed the policy-related forest insurance problems from different angles of policy target groups, policy makers, policy stakeholders and their attention focus.First, through the question discussion of forest disaster risk insurability and the theory of Public-Private Partnership, the operation mode selection and main characteristics in the three provinces were studied in the paper. It concluded that the assistant-insurance mode that commercial insurance company is the single insurer by the business assistance of forestry sector corresponds with China's developing need of forest insurance and could make the advantages of commercial insurance company and forestry sector complement each other.Second, through the behavior game analysis among the central, provincial government and insurance company in the processes of rating at forest insurance and the allocation of premium subsidy amount, this paper concluded that the central government could effectively motivate the provincial governments by the rating system of political right, and, in the mode of " low rate+high subsidy+ unified underwriting ", high premium subsidy and unified underwriting for forestry operator could encourage insurance company, but low rate leading to lower benefit should be an important reason for the passive participation of insurance company at policy-related forest insurance. So scientific allocation of premium subsidy amount and reasonable subsidy modes would be the key factors to realize the national policy goal.Third, from the new perspective, using the theory of Organization Environment and relevant knowledge, it concluded that commercial insurance company exists in the insufficient systems, including claim adjustment service and performance evaluation and other aspects about forest insurance by the analysis of internal and external environment of commercial insurance company. That has an important reference value for the government to establish and perfect policy-related forest insurance institution.Fourth, through the qualitative and quantitative analysis in the influence factors of peasant demand about policy-related forest insurance, it concluded that the government should adhere to the principle of voluntary application for commodity forest and strengthen the institutional supply in propaganda, premium subsidies, relating to the business links of core interests for farmers, deepening forestry tenure reform and so on.Fifth, combining with the analysis situation of paper, on the basis of the definition of government intervention range and the level of government unified planning, the operation framework with the function of strengthening the assistant-insurance mode, the cooperation among departments and supervision was built. Meanwhile, the main responsibility of participants was cleared in the operation framework. It has a more important theory and practical significance for policy-related forest insurance in China. In addition, through the discussion of theory and practice about the catastrophe risk dispersive problem of forest insurance, the catastrophe risk dispersive mechanism of forest insurance was constructed with the function of market operation, rate steadiness and profit regulation, which would provide a reference for the government to formulate relevant policies, enriching the application research of forest insurance field.