Research On The Institution Of Agriculture Catastrophe Insurance In China

Agriculture is a high risk industry, farmers must face many uncertain factors, such asversatile weather, uncertain market price, animals disease, short-time production decisionand long-time production project. To insure the agriculture production rise and stabilizefarmers’ income, agriculture catastrophe insurance plays an important role. Agriculture isvulnerable to influence by natural environment, such as flood, drought and so on. Naturalcalamities influence a wide scope, agriculture catastrophe risk is a systematic risk, andthe risk can’t subdivide. Reinsurance company maybe undertake this kind of agriculturerisk, but it’s expensive and there is no insurance company to buy this reinsurance. Andeven if some insurance are willing to provide these catastrophe insurance, they will sell itat extraordinarily price, which will lead to reverse choice and moral hazard. And it goesagainst the health progress of agriculture catastrophe insurance. Agriculturecatastrophe insurance is the bottleneck of the development of agricultural insurance.According to catastrophe insurance theory and international empirical, I come to theconclusion that we should build agricultural catastrophe insurance.This paper is based on the definition of the agricultural catastrophe insurance andclassification of the catastrophe risk for a detailed definition, and analyzed from threeaspects the agricultural catastrophe insurance function. Through the analysis andcomparison of foreign experience, we get the worthy reference. Then it analyzes thedevelopment of agriculture catastrophe insurance market in our country, then it analyzesthe feasibility and the actual situation of agricultural catastrophe insurance in our countryand the agriculture catastrophe model we choose which is suitable for our country.Strived to complete analysis, this paper discusses the suitable pattern for our country’sagricultural catastrophe insurance system. According to this thought, this articlespecifically is divided into the following five parts:The first part is a brief overview of the agricultural catastrophe insurance,. It gives usthe definition of the agricultural catastrophe risk and the functions and classification ofcatastrophe insurance respectively. The second part is the international experience for reference, respectively to theUnited States, Canada, Japan three typical countries as an example, this paper introducesthe three countries respectively, for their agricultural catastrophe insurance content andcatastrophe risk management measures. In the last through the comparison of the threecountries, we get China’s reference.The third part mainly introduces the plight of agriculture catastrophe insurance, inour country. Respectively it analyses from the angle of the operating market, applicantand policy-holder.The fourth part mainly discusses the feasibility of agriculture catastrophe insurancesystem in our country, and it analyses respectively from the market environment,technology and the government.The fifth part is the counterplan of agricultural catastrophe insurance in China,respectively writes from the legal angle, diversification of the risk, the establishment ofspecial agricultural catastrophe insurance companies and the government’s subsidies andpolicy support.