Study On Henan Agricultural Insurance Development Pattern

Agriculture is the first industry of a country. Agricultural production is related with thesupply of the country’s agricultural and sideline products, and then has a relation with thepeople’s livelihood. Agricultural production is a high-risk activity, therefore, agriculturalproduction is necessary to look for a lessening risk tool, in order to ensure that it can proceedsmoothly, agricultural insurance is one of the available tools. Since2004, the government hasfocused on the agricultural insurance, and it is listed as the important content to support forrural financial development for seven years. Henan province, as a typical agriculturalprovince, also continues to explore the development of agricultural insurance. Its developmentpattern has undergone the pure commercial operation-rural mutual plan as a whole-commercial mode business dominated by government, although every stage of the attempt hasmade some progress, it exists a substantial gap with the government expected targets. Earlypure commercial operation mode failed, the rural mutual plan as a whole disappeared, thoughthe commercial mode business dominated by government has defined agricultural insurance’spolicy attribute, it’s not very efficient.This thesis, takes this as an opportunity, analyses the history and current agriculturalinsurance mode’s advantages and disadvantages of Henan province, draws lessons fromdomestic and international agricultural insurance pattern, and then establishes a new modelsystem of agricultural insurance which corresponds with Henan province.Analyzing the history and current agricultural insurance pattern of Henan quantitativelyand comparing the domestic and international agricultural insurance mode, the authorcombines the dominant index method with the clustering analysis, because Henan province isan area which produces wheat chiefly, the author selects wheat yield coefficient of variation,wheat yield disaster loss, wheat specialization index and wheat efficiency index as leadingindicators, uses clustering analysis method to divide the wheat risk of Henan province, putsthese as theoretical basis, and then draws a new model system of Henan agricultural insurance:establishes an agricultural risk management foundation which is on behalf of thegovernment’s interests, lets agricultural insurance cooperatives as the original businessinstitutions which manage the agricultural risk and the risk management foundation andcommercial insurance company as the reinsurance institutions, in the premise of technicalguidance to agricultural insurance cooperatives, commercial insurance company is able tolaunch reinsurance to those agricultural insurance coverage from which it can get small profit, agricultural risk management foundation undertakes reinsurance to the farming unprofitableplants, agricultural insurance risk management foundation issues to the agricultural insurancecooperatives full management cost and the commercial insurance company certain proportionof management fees, subsidies for farmers, in great plagues years, gives the agriculturalinsurance cooperatives and commercial insurance company some privileges, etc. And theauthor discusses the supply and demand problem of this agricultural insurance model,anticipates the benefits which this model can get, and puts forward some policy suggestions inorder to secure this model implementation.This study has some breakthrough in Henan province crop yield risk division. For thesake of of lessening risk for Henan agricultural province, it finds a selection model.