Study On The Rural Social Capital And Insurance Decision

In recent years, the central committee and the state council attaches great importance to the agriculture, rural areas and farmers insurance, has issued a series of policies to promote agriculture, rural areas and farmers insurance in rural areas. The implementation effect of agriculture, rural areas and farmers insurance depends on whether farmer participates in, the research on farmers'insurance decision has important theoretical and practical significance. Past studies often analyse the factors of farmers' insurance decision from the view of rational choice and emphasizes the economic factors on the role of farmers' decision, however seldom analyse the non-economic factors. Social capital gives an explanation of non-economic factors on insurance decision. This paper is to investigate the rural social capital on the role of insurance decision, and put forward the suggestion to improve the content of the rural social capital.Through the literature review, the paper puts forward the rural social capital analysis framework and insurance decision analysis framework, and constructs the theory model of rural social capital and insurance decision. The rural social capital includes two levels of the peasants' individual social capital and village domain social capital, and interactive, trust, mutual reciprocity and standard are its core dimension. Insurance decision including two levels of the farmers'insurance decision and village domain insurance decision is a dynamic process, including needs recognition, information seeking and participation index, insurance participation behavior and insurance evaluation. The theoretical analysis finds that insurance decision is embedded in the rural social capital.Through the trust, the rural social capital reduces system transaction cost, through the interaction, it generates the group effect and the partner group demonstration effect, through the mutual, it produces "packed" and "squeeze" effect, through standard, it produces adjustment effect, the rural social captial has stimulation effect on farmer' insurance decision.With farmers' participation in the new type of rural social endowment insurance as an example, the paper collects the data about the rural social capital and insurance decision on the new type of rural social endowment insurance through questionnaire survey and department survey among 4 counties in 3 provinces in our country, farmers and village domain for analysis unit. The empirical analysis finds that the rural social capital is a "multidimensional" concept, the peasants' individual social capital shows "differential mode of the association form ", the village domain social capital is lack of general trust. The relationship between the dimensions of the rural social capital is a dependent one. Whether farmers or village domain level, the relationship between information search, participation index and participation behavior is correlated. From two aspects, it is analyzed that rural social capital is apt to the insurance decision using regression analysis method. Research finds that the rural social capital helps to reduce the cost of information search, improves the participation index, the results verify the "embedded" of insurance decision, the rural social capital maintains a positive effect on farmers'participating in the new type rural social endowment insurance.Whether voluntary social insurance such as the new type of rural social endowment insurance, the new rural cooperative medical treatment based on government, or the commercial insurance such as the commercial endowment insurance based on market, the rural social capital is apt to the insurance decision through the interaction, trust, mutual reciprocity and regulation. The transaction cost theory, process incentive theory and herding theory explain the mechanism of the rural social capital on the role of insurance decision. In view of the important role of the rural social capital, we can improve the content of rural social capital, by developing rural folk organization, building a rural social credit system, enhancing mutual standard and protecting the rural tradition.Based on the above analysis, the main conclusions of this paper are that:the rural social capital includes two levels of the peasants' individual social capital and village domain social capital; farmers' insurance decision is a dynamic process, including information seeking, participation index, insurance participation behavior; insurance decision is embedded in the rural social capital, it helps to reduce the cost of information search, improves the participation index and the possibility of farmers' insurance decision; we can improve the content of the rural social capital, from such four aspects as rural folk organization, rural social credit system, mutual standard and the rural tradition.