The Research On Development Of Chinese Rural Micro-credit Insurance

The third plenary session of the 17th Central Committee of the communist party proposed that"establishing a modern rural financial system and improving the rural social security system, only in this way is it possible to build a new socialist countryside."Rural micro-credit insurance is a service delivery which focuses on rural financial. It introduces insurance mechanisms to rural financial institutions which can prevent and reduce the credit risk of rural financial institutions. No doubt that it provides some protection to the establishment and improvement of rural financial system.To micro-credit institutions, as farmers loans are mostly unsecured credit loans or guarantee of farmers'loans, the risk of the rural credit market is enormous. To a large extent, that leads to credit corroborative in rural areas lend loans hard, so do farmers credit loans. Micro-credit insurance, a new model of banking and insurance cooperation, could help credit corroborative in rural areas and other financial institutions to transfer the credit risk effectively. On the one hand, it can reduce the risk of loans of credit corroborative in rural areas and expand its credit line to alleviate the farmers getting loans; on the other hand, it brings premium income for insurance companies, expands the influence of insurance in rural areas and improves farmers'insurance consciousness. You can say that the development of rural micro-credit insurance can make micro-credit institutions, insurance companies and the farmers achieve good results at the same time.In China, micro-credit insurance is still at the exploratory or pilot stage. Though analyzing the development status of foreign micro-credit insurance from which we learn experiences and combined with China's national conditions, the paper analysis that it is necessary and possible to carry out micro-credit insurance. The paper also presents development model of our micro-credit insurance. And analyzing the constraints of carrying out micro-credit insurance in our country at present, at last, this paper puts forward its own policy proposals in order to make micro-credit insurance have theoretical and practical significance in China's rural areas.