Study On Chinese Farmers' Agricu Ltural Insurance Behavior Under The Perspective Of Behavioral Finance

Farmers' agricultural insurance behavior refers to a series of activities conducted by farmers to acquire desirable agricultural insurance products including choosing,selecting,purchasing,using and accessing etc,which is also a projection of psychological and behavioral factors on products and external surroundings.Risk perception examines the cognition process of farmers on agricultural risk.Mental accounting explores the evaluation process of farmers on agricultural insurance.Herd effect is the result of farmers' processing information and revenue regarding agricultural risk and insurance.Study on farmers' agricultural insurance behavior helps to recognition of influencing factors of their insurance decision-making,and it also has significant theoretical value and practical implication on guiding farmers'scientific and reasonable consumption of agricultural insurance,directing insurance companies'operation of agricultural insurance,promoting the further and balanced development of agricultural insurance.Based on the perspective of behavioral finance,the study theoretically and practically explores farmers' agricultural insurance decision-making process and influencing factors while combing China's agricultural insurance practice,anticipating to elevate famers' agricultural insurance decision effect and to promote the healthy and balanced development of China's agricultural insurance market.The contents of the study are as follows:Part One introduction,which is the first chapter,presents the background of study,states the purposes and implications of the study,reviews the relevant literature home and abroad,lists the methodology and contents,draws the technical route of the study and points out the possible innovations and deficiencies.Part Two the basis,which covers chapter 2 and 3,displays the basic theories and conduct the basic analysis on China's agricultural insurance consumption.Chapter 2 defines relevant concepts that are frequently referred throughout the study including agricultural risk,agricultural insurance,farmers' agricultural insurance behavior,and introduces the basic theories such public goods theory focusing on the features of agricultural insurance,expected utility theory and prospect theory focusing on farmers'agricultural insurance decision-making.Chapter 3 depicts the current situation of agricultural insurance consumption in China on national and regional levels.The indexes that are used here include insurance revenue,insurance claim,insurance density and insurance depth.Part Three theoretical study covers chapter 4,5,6 and 7.Chapter 4 is the foundation of Part Three,which introduces and compares the farmers'agricultural insurance decision-making under traditional and behavioral finance paradigm.Chapter 5,6 and 7 focus on risk perception,mental accounting and herd effect respectively and study their effect on farmers'agricultural insurance decision making.Specifically,chapter 5 studies fanners behavior "agricultural insurance purchase often takes place after a disaster but not before" and "Farmers tend to cancel insurance policies if they haven't collected on them for some consecutive years" from the perspective of risk perception;chapter 6 studies the behavior that fanners tend to under consume agricultural insurance while prefer P&C insurance policies with low deductibles;chapter 7 studies farmers'herd behavior when they purchase agricultural insurance.Part Four empirical study covers chapter 8 and 9.This part studies six groups of variables,which are risk perception,risk management,agricultural insurance recognition,agricultural insurance trust,agricultural insurance affordability and agricultural production affection during farmers' agricultural insurance decision-making.Chapter 8 uses China's provincial date from 2004-2013 to study influencing factors of and their mechanism on famers'agricultural insurance decision-making,while chapter 9 uses China's provincial date from 2007-2013 to study the behaviors factors differences of famers' agricultural insurance decision-making in East,Central and West China.Part Five conclusion,which is the last chapter of the study,summaries the major conclusion of the study and propose some policy recommendations.The major conclusions of the study are:(1)the insufficient adjustment to agricultural risk leads to that agricultural insurance purchase always takes place after a disaster and farmers would cancel agricultural insurance if they haven't collected on policies for some consecutive years;(2)independent mental accounting leads to insufficient consumption of agricultural insurance and low deductive policies preference in P&C insurance market;(3)the primary motive of farmers agricultural insurance behavior includes minimization of transaction cost,maximization of government disaster relief,avoidance of embarrassment by keeping farmers circle complete and collective action;(4)Farmers'agricultural risk management ability,agricultural insurance recognition,trust,affordability determine their agricultural insurance consumption;(5)there is a regional difference of farmers'agricultural insurance consumption,and the influencing factors of agricultural insurance behavior are not exactly the same from East to West China.