A Study On Governmental Behavior And Its Impact On Agricultural Insurance

Historically,China faces a high risk of natural disaster occurrences.In recent years, various forms of natural disasters caused major damages to nation's agricultural businesses with an annual loss of more than 200 billion RMB.Under the circumstance,agricultural insurance becomes a significant countermeasure in term of reducing risks for the insured and stabilizing the agricultural economy. Since the agricultural insurance services heavily rely on public policies,government naturally becomes the central figure of the agricultural insurance system.Thus,governmental actions constantly bring major impacts to the agricultural insurance industry.As China integrates itself into WTO,agriculture reforms are taking place at an unprecedented pace.As a result,series of experimental agricultural insurance measures have been implemented.Related policy studies and legislation researches have become hot topics for academic circles and major players of insurance industries.The study focuses on the governmental actions and its impacts on China's agricultural insurance industry and presents a series of analysis on how China would develop and establish a set of feasible agricultural insurance policies.It compares the governmental actions taken by different countries and institutions,including measures that have been adopted by the Chinese government.By looking at those measures,their results and other experimental practices,the study attempts to point out many critical areas within the Chinese agricultural insurance system that have to be improved.It further suggests several possible approaches through which government could take actions and provide guidance to the growth of the agricultural insurance businesses.The research concludes that the agricultural insurance is a government policy oriented business and the actions taken by government basically determine the fate of the entire agricultural insurance industry.Due to lack of public funding and legislative support,the agricultural insurance system in China is clearly legging behind.The Chinese government should further develop its agricultural insurance infrastructure,and provide adequate legal and business support to the industry.Meanwhile,the Central Government should subsidize the agricultural insurance business with guaranteed federal funding.The study suggests that the country should establish a national agricultural insurance agency to enforce all local agricultural insurance practices.Furthermore,the proposed agency should become an active institution to explore other forms of insurance services and promote healthy growth of the industry.