Research On The Development Of Agricultural Mutual Insurance In China

The agricultural insurance has not displayed well the function which is spreading loss inour country. It had not found an effective way for developing the agricultural insurance.Mutual insurance is an important organizational form which is suitable for the development ofagricultural insurance. At present China’s agricultural mutual insurance is still in its infancy.Many factors effect its development. In order to develop the agricultural mutual insurance thegovernment should learn from the advanced experience of developed countries to research theeffective response.The mutual insurance has the strong competitive power and the comparison superiority. Itholds a great proportion in the international agricultural insurance market. The agriculturemutual insurance was still at the start stage in our country. The research in agricultural mutualinsurance could find the new outlet to for agricultural insurance in the situation that otheragricultural insurance pattern is unable to satisfy the agricultural insurance development. Theagricultural mutual insurance is advantageous in preventing and decreasing the agriculturaldisaster, solving the difficulty in management and operation for agricultural insurance, solvingthe question in moral hazard and the reversion choice, increasing the effective supply anddemand as well as reducing the high cost. These superiorities have decided that it is necessaryto apply the mutual insurance in agricultural insurance in our country. Moreover our countryagriculture mutual insurance has the good social basis, and the mutual insurance is also suitableto agricultural insurance which belong to the Policy-oriented insurance. Simultaneously theagricultural mutual insurance has certain experience and the technology in the management andoperation aspect. It explained that the agricultural mutual insurance is a new agriculturalinsurance system which suits our country national condition.But we must recognize that our country still had many factors which impede developingagriculture mutual insurance in present. For example, the laws and regulations are not perfect,and the supervision method is not suitable. Finance and tax revenue and financial subsidy areserious insufficient. The risk dispersion mechanism not yet establishes, and the managementalso has certain difficulty. These had decided that we cannot development agriculture mutualinsurance blindly. We must profit the advanced experience from the developed country.Although Japan is the developed country, it is also the Asian country. Its agricultural development faces the question which is similar in our country. Its strategy also has the strongserviceability to our country. Then France is also the typical country whose agricultural mutualinsurance is mature in the world. Its experience also has the function to reference. These twocountries have the good legal safeguard, the effective mechanism to disperse risk and thegovernment’s support. Therefore the government must increase dynamics in these three aspectsto accelerate developing. Moreover, we must establish the independent mutual insurancecompany to supervise the development for organization. At the same time, we must combinethe statutory insurance and voluntary insurance to sharpen its risk resistance in the condition offarmers’ weak sense of insurance. In addition, the organization must optimize the managementstrategy to reduce the impact of the high risk from agricultural insurance.