Study On The Development Of Agricultural Insurance And The Supporting Policies

Agricultural insurance is an important tactics to evade non-systemic risk of agriculture , one of three big pillars (agriculture science and technology , agriculture finance and agricultural insurance) of modern agriculture development under market economy condition , and one of Green Box Policies permitted by the rules of WTO to support agriculture. All the countries in the world attach importance to agricultural insurance and develop commonly, and give agricultural insurance energetic support of policy and finance, make agricultural insurance become one of the policy instruments supporting and protecting the homeland agriculture. China have huge number of peasantry , agriculture is still in "small peasants" stage, the agriculture economy is behind times in general that can't resist the production and market risks. While China acceding to WTO, the agriculture needs insurance urgently because of both market risks and nature risks. However, actual circumstances is that our country agriculture business is rapid shrinking, China's agricultural insurance has plunged into a condition of market failure.This paper analyzes by theory and empiricalm, firstly, it provides the theoretical and empirical support to the supporting policies of agricultural insurance; Secondly, it tries to discover the problems of the peasantry, insurance agent and government; Finally, it seeks after government's effective supporting policies to agricultural insurance. This paper is composed of 6 chapters. The first chapter of this paper is preface, it mainly introduce the paper's research content, means and technology route, at the same time, make a simple retrospect on theoretical and empirical study to home and abroad of agricultural insurance. The chapter 2 of this paper is theoretical analysis of agriculture insurance. Firstly, it defines some basic concept; Secondly, it analyzes the necessity of supporting policies of agricultural insurance; Finally, according to economics theories, the paper comes to a conclusion that agricultural insurance belongs to quasi-common goods and the supply and demand curve of agricultural insurance can't intersect without the supporting policies. This conclusion provides the theoretical support to the supporting policies of agricultural insurance. The chapter 3, by introduces and summarizes the condition of the country which develop agricultural insurance well, such as American, Canada, France, Japanese, Philippines and so on., the paper comes to a conclusion that both the developed country and the developing country generally give agricultural insurance many-sided supporting policy , especially to crop insurance. The fourth chapter firstly introduces our country agricultural insurance development course and makes simple commentary; then analyzes and discovers the problems of the peasantry, insurance agent and government. The fifth chapter uses the quantity economic model to analyze China's agricultural insurance business data during 1984-1998, and comes to a conclusion that the net income of rural households and the policy factors are the maximum factors which affect the development of our country agricultural insurance, according to theoretical and empirical analysis with the previous article, which also explain the situation that the rapid atrophy and market failure of our country agricultural insurance business. At present, the peasant income increases slowly in our country, while the ratio of agriculture income to the peasant income come down year by year. The net income of rural households is the direct source of agriculture insurance premium, the peasant will adopt a self-insurance means to evading risk when their income are too low. Meanwhile, without the policies and the economical supports of government, the low income even the negative one of agricultural insurance is unable to maintain the agricultural insurance supplies of the commercial insurance company.The sixth chapter is the suggestions. Firstly, the author explores and introduces the policy agricultural insurance modes in China, and considers that the selection of institutional modes can not be the same pattern, which can only carry out as experimental units in the areas and markets which have good conditions, then according to the experiences builds the policy agricultural insurance system that the multiple echelons system, many channel support and many main body manage ultimately. Then combines the problems during China's agricultural insurance development, put forward to the following policy suggestions such as strengthen agricultural insurance legislation and special laws and statutes construction, improve the peasant income energetica, reinforce the government's policy and financial support to agricultural insurance, strengthen agricultural insurance propagandizer and improve peasant risk consciousness, accelerate the cultivating of agricultural insurance talents.