Study On Reserve Funds For Catastrophy Of Argriculture Insurance Supported By Government

Agriculture insurance pilot experiment has been done in China for 50 years. However, the result of the pilot experiment is not successful. The premium of agriculture insurance is shrinking dramatically. The variety is decreasing too. The peasants can not afford such expensive premium and the insurance company who did the pilot experiment can not afford the high expense of the pilot experiment of insurance. Both of the reasons result in the imbalance of supply and demand in agriculture insurance transaction market. There are few policies supporting the development of agriculture insurance. The main reason is that the agriculture insurance lack of the support both in theory and technology, for example, it is lack of the catastrophe fund supporting the operation and development of agriculture insurance. Furthermore, the difference between government agriculture insurance and commercial agriculture insurance tell how necessary to establish the catastrophe fund to reduce the gap of the financial operation.China is an agriculture basis country and with a vast territory. The difference of climate is dramatic and the disaster happened in the history has caused amount of losses. The trend is that the disaster is more frequent and the figure of the losses becomes bigger and bigger. All the data of various disasters provide the foundation to establish the catastrophe fund.The policy of government agriculture insurance in each area is different; the frequency and scale of the disaster is various; also, the price of the farm products increasing gradually; And the scale of the premium in agriculture insurance has been growing due to the development of the test of government agriculture insurance in whole country. All the elements mentioned above have big influence on the scale and size of the catastrophe fund.Based on the data of agricultural losses in Beijing and analyzed the price of farm products, the scale of the catastrophe fund has been tested out in the initial stage. All the analyses provide some useful model in establish the catastrophe fund. The most importance of building an effective fund is how to collect the fund and how to use it correctly. The increment of this fund is of significance.