China’s Rural Microfinance Insurance Research

Product of micro-credit insurance as banks and insurance companies, can help banks effectively transfer credit risk. Rural Micro-credit plays an important role in the development of rural economy, but because the rural residents unsecured credit loans or peasant peer-selection loan ratio is very large, the lending institutions, rural credit market there is a huge risk, so as to restrict the rural micro-credit management difficulties. Micro-credit insurance as a response to the rural microfinance and design services, to introduce the mechanism of insurance in rural economic development, to prevent and reduce the credit risk of rural financial institutions, is undoubtedly provides favorable guarantee for improving the rural financial system.In this paper, using the method of literature research, empirical research, system analysis and behavior, to study rural micro-credit insurance. Display of China’s rural development analysis of the necessity and feasibility of micro-credit insurance, insurance of rural micro-credit development, conducive to the rural credit cooperatives and other financial institutions to effectively transfer the loan risk, support the rural microfinance sustainable and healthy development, at the same time, a good macroeconomic environment, the huge potential market demand, market supply main body and continuously enhance the development also helps to rural micro-credit insurance. The development situation and restriction factors of insurance of China’s rural micro-credit analysis found, urgent needs of rural micro-credit business both sides of supply and demand with the strong support and cooperation, but need to micro-credit insurance business, the insurance companies to actively explore the micro-credit insurance mode, but because of policy support is not in place, business operation and market competition is not market norms, identity is not high, lack of innovation and other reasons, the development of micro-credit insurance is restricted badly. Finally, according to research on the development of insurance of rural microfinance in China, to strengthen policy support, develop micro-credit insurance market healthy and orderly, according to the different characteristics of the micro-credit insurance mode of development of East and west region of china.Because the level is limited, the lack of empirical model of the proposed, need further study.