Study On Institution Of Chinese Agricultural Insurance

Agriculture is the most important implement of China which frequently been affected by natural calamity. It has been about 1/6 percent of fiscal finance that the natural calamity caused, of which the rural areas take the main part of damage. It can not provide the efficient compliment to the agriculture reproduction with the traditional method of life help. In the other hand, the traditional help depends on the social donate and fiscal finance of government, which is lack of continuation and stabilization. So the life help method to the natural calamity in rural areas will not comply with the practice situation. However, the agricultural insurance is irreplaceable of spreading and transferring the risks, guaranteeing the stabilization of agricultural production. Till now, the agricultural insurance has accumulated lots of achievements in developed countries in the world and it has become the international practice to protect the agriculture. From the aspect of practice experience around the world, the key point of the agricultural insurance is whether there is a pattern and system of agricultural insurance which can match the local situation and the real needs well.From since the WTO, the agricultural insurance in China has been paid more attention of government as the important non-price protection policy. So the research on the pattern and system of agricultural insurance in China is very meaningful and practical.This paper starts from the supply and policy characters of agricultural insurance. Furthermore, this paper deeply investigated the characters of agricultural insurance such as welfare,externality and the quasi-public goods, in order to point out that the traditional theories of agricultural insurance's characters are not very precise. The paper believes that the government subsidies depend mostly on the efficiency compared to the relative agricultural supporting policies. In nowadays, it will reflect the effect of agricultural insurance better that bring the insurance of cattle and bulk crops into the rural social security system.Secondly, this paper made the compare and analysis from the practice aspect of the USA, Japan, France and Brazil etc and pointed out the elicitation for developing our agricultural insurance. At the same time from the analysis of the profile of agricultural insurance in China and its development environment to draw the huge potential of China's agricultural insurance market. But the meanwhile, this paper also figured out that there are still many shortcomings of agricultural insurance in China, such as the reinsurance system, deficiency of support to insurance applicants.Finally, we analyzed the experience of domestic and international agricultural insurance, and bring forward policy proposals. We suggest that we should build China's agricultural insurance system according to the national conditions, the risk characteristics of local agriculture, agricultural production characteristics, behavior farmers and preferences, the Government's financial capacity, management of insurance companies and other factors.