The Difficult Position And Outlet Of China's Agricultural Insurance: Academic And Practical Analysis

As an important part of the rural financial system, agricultural insurance has an important role in supporting rural development and stabling the income of rural residents. At present, agricultural issues are paid more attention by governments than any time. In such a background, we should speed up the establishment of insurance protection mechanism which is fit to the development of the agriculture and to prevent and reduce the risk of agriculture. Because they're necessary to promote the industrialization of agriculture and structural adjustment as well as enhance our country's international competitiveness of agriculture.This paper review the development of the agricultural insurance in China since the founding of the PRC and introduce the status and difficulties faced by China's agricultural insurance on the basis of description of the related concepts and literature review. China's agricultural insurance faces the problems of " Supply shortage" and "Insufficient effective demand" as well as the dilemma of operation and development. So this paper discuss the reasons for insurance market's failure from the perspective of welfare economics and institutional economics and attribute it to the quasi-public goods nature of the agricultural insurance, the lack of laws and interaction of the participants. Then this paper introduce the representative mode of agricultural insurance in the world and give a series of policy proposals such as improving the legislation and functions of the government and raising the level of commercial insurance companies's development of agricultural insurance.This paper lack of quantitative analysis because China's agricultural insurance start late and lack of sufficient datas.