The System Design And Rate Determination Of Agriculture Catastrophe Insurance Fund

China is a country with frequent natural disasters, which cause huge losses to the agriculture production, and as the trend of our urbanization and agriculture population transfering to non-agriculture industries, the stability of China's agriculture production is facing more and more challenges. Our existing agriculture relief system has been seriously vacant, failing to meet the actual need of agriculture development and risk management, and becoming urgent social and economic problems. To effectively deal with the impact of natural disasters, enhance the participation in the efficiency of agriculture disaster relief and compensation, and guarantee the stability and sustainability of production and protect the life of farmers, we must establish and perfect the three-dimensional agriculture catastrophe insurance system in the form of government leading and insurance market subjects participation. Through the analysis of domestic agriculture catastrophe insurance development condition in this article, we find out some existing problems and the insufficiency. Also we fully analyze the means of agriculture catastrophe risk management, including the self-owned capital, government subsidies, reinsurance and risk securitization, etc. We should learn agriculture catastrophe insurance practical experience from the aspects of organizational framework and operation mechanism from abroad developed countries, such as the U.S and Japan,and article points out that the development of agriculture catastrophe insurance must have the legal guarantee and government's financial subsidies, use reinsurance to disperse risk and risk securitization to transfer risks to the capital market, and draw the establishment of agriculture catastrophe insurance fund is an effective mechanism, thus, it provide a good reference on the mode of operation and the system arrangement of Chinese catastrophe insurance. Therefore the author proposes to establish a conception of catastrophe risk management system, with agriculture catastrophe insurance fund as the core, reinsurance as the main risk scattered means and risk securities as auxiliary means, combine government subsidies with market mechanism, the insurance market with the capital market, as well as static management with dynamic balance, and raise the level of risk management and the funds operation. It details the organizatioin structure, operation mechanism and loss allocation mechanism of agriculture catastrophe insurance management, would be well applied in the practice of agriculture catastrophe insurance, and improve the maneuverability of policy suggestions to make realistic significance. Under the insurance market mechanism, the article explore to make the premium rate of agriculture catastrophe insurance products. Use three indexes, including grain variation coefficient of the per unit area yield, reduction strength of disaster and areas drought resistance, to measure the risk level of different provinces. Then adopt non-parameter kernel density model to determine the abnormal volatility of grain output in different provinces, then conduce the premium rate with risk zoning and provide some reference for product pricing of agriculture catastrophe insurance in our country. At last, it sums up and promotes the main conclusions and puts forward targeted policy suggestions according to the actual development of our agriculture catastrophe insurance.