The Research On Information Asymmetry Of Agricultural Insurance In China

Agricultural insurance is one of the three pillars of modern agriculturaldevelopment,especially for our country,which the agricultural production is facing morecomplicated and diversified natural risk now.So,the function of scattering the agricultural riskand stabling the income of farmers of the agricultural insurance is very important for ourcountry.The government is providing premium subsidies continuously since2007to developagricultural insurance and has obtained certain achievement:the agricultural insurance hasdeveloped from closing down nearly to the second branch of the property insurance.Theagricultural insurance market in our country has also jumped to become the secondagricultural insurance market around the world.Foreign agricultural insurance practice has proved that asymmetric information of theagricultural insurance is inevitable during the development of agricultural insurance and isone of the important reasons for hindering the development of the agricultural insurance,especially the asymmetric information between the farmers and the insurance company.According to the development of agricultural insurance in our country,the informationasymmetry of agricultural insurance has become to emerge.For example,some farmersplanting crops in high-risks areas,relaxing the management of the subject matterinsured,reducing the inputs,making insurance accident on purpose and so on.All of theseproblems have led to the lack of supply and demand for the agricultural insurance,and haverestricted the healthy development of agricultural insurance in our country greatly.The research object of this paper is the information asymmetry of agricultural insurancebetween farmers and insurance company in our country. On the basis of large reading relatedliterature at home and abroad and surveying practically,the performance, causes, harm andprevention measures of the information asymmetry of the agricultural insurance aresummarized.With information asymmetry theory, principal-agent theory and game theory asthe theoretical support,this paper states the information asymmetry performance of theagricultural insurance in our country and based on this, deeply analyzes the informationasymmetry causes and negative influence of agricultural insurance.Combined with the foreign successful experience and actual situation in our country,this paper puts forward thecorresponding suggestions that prevent our country’s agricultural insurance informationasymmetry.