Study On Farmer's Desire Of Demand For Agricultural Insurance In Zhejiang Province

As the fundamental industry of the national economy, Agriculture's development restricts the national economy's development directly. However, one of the rural economy's most remarkable Characteristics is that it is easy to be influenced by the natural factors, and the natural disasters have become a main factor which prevents the rural economic from developing and the peasants raising income. How to reduce the impact that caused by natural disasters on farmers has become an inconvenient issue when promoting the new rural construction. As an important way of evading the agricultural non-systemic risk, agricultural insurance is one of the three pillars of the modern agricultural development under the market economy condition (agricultural science and technology, agricultural finance and agricultural insurance), one of the " green box "policies that World Trade Organization allows every country to support, and it is also an important protective measure of the ensuring the nation's steady development of agriculture.As an agricultural disaster-prone provinces, Zhejiang suffered hundreds of millions economic losses from the natural disasters each year. Frequent natural disasters hindered the development of rural economy and brought peasants the large number of tremendous difficulties. Though certain achievements have been made since the agricultural insurance was founded in Zhejiang Province in the early 80s of the 20th century, there are still existing many problems. Agricultural insurance's participation ratio is too low while the loss rate is too high, and the truth that expenditure over income makes the commercial insurance companies difficult to maintain the daily running, the province's agricultural insurance has been shrinking rapidly for many years. Until 2006, under the guidance of government, Zhejiang Provincial agricultural insurance co-insurance body was established, and the agricultural insurance in Zhejiang began moving on the right track gradually. Therefore, the Study of Zhejiang's agricultural insurance has the important significance both in theory and practice.This thesis aims to study the factors which influences the demands of the peasants'agricultural insurance, under the guidance of agricultural insurance-related concepts and theories and behavioral economics theory, based on the characteristics of agricultural insurance and referring to the realities in Zhejiang Province, analyzing the demands of the agricultural insurance mainly from four parts:the economic factors; social and cultural factors; policy factors and peasants'own factors. At the empirical part, we adopt the questionnaire data that generated in August 2008 total 507, selecting seven easily quantified indicators as the variables, applying the econometric empirical logistic regression model to analyze, analyzing the factors that influence the peasants'demand of agricultural insurance from the empirical results and behavioral economics. Finally, this paper also put forward some relevant proposals from three aspects:the government, insurance companies and peasants, such as that the government should adopt more favorable policies in supporting the agricultural insurance, the insurance companies should diversify the agricultural insurance products, and greatly increase the income level of peasants and anther other relevant policy recommendations to promote the development of agricultural insurance.