A Study On The Agricultural Insurance Subsidy In China

Agriculture is the country’s most basic industries, the relationship between the national economy and people’s livelihood. Caused by the uncertainties of agricultural production is natural risks, followed by also including a variety of operational risks. In order to ensure the smooth conduct of agricultural production, the country must attach importance to the agricultural insurance work, thus contributing to the development of agriculture, increase farmers’ income. The current national practice of some domestic and foreign agricultural insurance experience shows that implementing urgent policy-oriented agricultural insurance system. Sustainable development of agricultural insurance to rely on the support of the government, mainly in the form reflected in the policy of government to provide subsidies for agricultural insurance. The importance of financial subsidies for agricultural insurance, governments have reached a consensus in theory and in practice, and actively explore the subsidy measures suited to their national conditions. China, as a big agricultural country is no exception.In2007, China’s central finance from the budget for the first time specifically spending2.15billion yuan of agricultural insurance premium subsidies, so that the development of agricultural insurance with remarkable results. Next time, the Chinese government to further increase agricultural insurance subsidies, has made certain achievements:agricultural insurance from the brink of closure of the upgrading of the P&C insurance, China has jumped to become the world’s second largest agricultural insurance market. At the same time, however, China’s agricultural insurance subsidies work more and more exposed a lot of problems, such as the lack of a comprehensive subsidy legislation, narrow the scope of subsidies, a single way of subsidies, subsidies less efficient, these problems are greatly restricted China’s agriculture the implementation of the policy of insurance subsidies and the healthy development of agricultural insurance subsidies.This paper makes agricultural insurance subsidies for the study on the basis of a lot of reading of the relevant literature, the supply of agricultural insurance, demand for agricultural insurance, agricultural insurance subsidies motives subsidy model, the proportion of subsidies and subsidies in the form of a comprehensive review, to market failure, asymmetric information theory, game theory and welfare economics, theoretical support for the system from an economic point of view to analyze the motives and policy of agricultural insurance subsidies. In the analysis of the current situation and existing problems of China’s agricultural insurance subsidies, and put forward policy recommendations to improve China’s agricultural insurance subsidy system by drawing on the successful experience of the main foreign national agricultural insurance subsidies, combined with China’s actual situation.