Discussion On The Model Of The Agricultural Catastrophe Insurance In Chongqing

Chongqing is a region where suffers frequent and serious agricultural catastrophes. The risks during the process of the agricultural production are likely to cause great losses, which influences the stability of agricultural production greatly. The most effective way to divide the risks in the agriculture is Agricultural Insurance. This paper based on the current situ action of Agricultural Insurance in Chongqing.The positive exterior feature of agriculture benefits, Agricultural Insurance products are sub-public goods and to a certainty unstable of Agricultural Insurance have decided that Agricultural Insurance market is easy to suffer"market failure". Therefore, use commercial insurance to solve this issue is incapable, so, Agricultural Insurance should have government's efforts. However this, Agricultural Insurance has strongly exclusive characters during consumption process, thus, the government should intervene Agricultural Insurance, but not the whole sale. Aimed at the situation that Chongqing and even the whole nation is implementing"unify"Agricultural Insurance system currently, this article advocates establish"duality"Agricultural Insurance system that divide the Agricultural Catastrophic Insurance from common Agricultural Insurance. In other words, the agricultural catastrophes which have high risks and large losses caused high costs which the commercial insurance attempt to avoid should undertake by the government and, the commercial insurance corporation is more suitable to the Agricultural Insurance that only cause low risks and small costs.Due to Agricultural Catastrophic Insurance is most enormous influence in Agricultural, this paper to stress on the importance for exploiting the Agricultural Catastrophic Insurance model. As the insurance postulate is not suit for agricultural catastrophic (has inferior insurability)-largely and stochastically risks cause agricultural risks are hard to spread, where, the Agricultural Catastrophic Insurance only has tiny chance be insured which caused only the long-term and large-scale Agricultural Insurance can better divide risks but increase insurance chances. Thereafter, the paper relates to analysis of the domestic variety Agricultural Insurance models, and proposed that policy Agricultural Insurance should be adopted in Agricultural Catastrophic Insurance. And, national Agricultural Catastrophic Insurance Company should establish which should sponsor by the central government and directly running by government. Under his leading to build province, district and town three-level superincumbent insurance institutions for Agricultural Catastrophic Insurance in Chongqing.