Economic Analysis On The Imbalance Between Supply And Demand Of Forest Insurance Market

Firstly, the paper systematically analyzes the research background and significance, actuality, and the research clue of whole paper. As for the research actuality, it makes the summary of the research on foreign current forest insurance system and domestic forest insurance market, according to the aspects which are related to the paper writing.Secondly, forest assets and general industrial assets are carried out some comparative analysis in the economic characteristics, we find the forest assets compared with real estate and industrial assets show poor measurability as well as poor liquidity and preservation of nature.Thirdly, based on the analysis of the status quo and characteristics etc, the insurance market of forest are specifically researched, as well as analyze the forest insurance in the cost and cost impact on the supply; the price and price impact on the demand of forest insurance market; Come to the composition of operating costs of the forest insurance products, compare the fixed costs with the flow costs, the flow costs occupying more than 80% of the total cost, while in the flow costs, compensation costs is the main part, and compensation costs occupy 67% of the total cost. This characteristic of cost constitutes decides, by expanding the scale of forest insurance is difficult to rapidly reduce costs. Arrive at the forest insurance's high cost led to the supply of inadequate; high prices led to lack of demand;Fourth, based on the asymmetry of information, analyze the imbalance between supply and demand of forest insurance market; and positive externalities of forest insurance market on the impact of imbalance. Adverse selection and moral hazard, as well as positive externalities resulting in deforestation and shrinking insurance market, the entire social resources configuration is invalid.Fifth, with the help of charts, the use of marginal analysis and game analysis method of forest insurance external effects and the effects of financial subsidies to conduct in-depth analysis, and find out outside of the forest insurance determines the operation of their business and it can not do without government support, the government could through financial means to implement the policy of subsidies to promote the supply and demand of forest insurance and mutual growth.Finally, according to the above-mentioned findings of the study of forest insurance coverage in promoting the further development of related recommendations: First, the government should step up fiscal and policy support; Second is to consider the voluntary insurance and compulsory insurance combined to raise the rate of forest insurance policy holders; Third is to reform the current insurance system, set up a policy of an insurance company as soon as possible; and Fourth is to strengthen product development, enhance the management capacity; Fifth is to increase knowledge of forest insurance propaganda; Sixth is to sound our forest insurance laws and regulations.