Analysis Of Key Factors Influencing The Demand For Forest Insurance

Forestry which has the foundational status in the economic de-velopment is an important part of national economy. Forest insurance is an important safeguard measure to promote the sustainable development of forestry. But at present the development of forest insurance is not very ideal because of insufficient effective demand, lack of the selectivity of insurance company, low basic service ability, not enough types of insurance to meet the need, shortage of channels of insurance, un-reasonable standard of compensation, insufficient publicity on forest insurance, inaccurate development orientation of forest insurance and so on.Based on Expected Utility Theory, Maslow’s hierarchy of needs theory and Consumer Equilibrium Theory, this research collects data from the different levels of social structures. Based on the survey data of484visited farmers in10counties of Fujian province, it has established double-level statistical model, applying program SPSS for performing regression analysis of the data to find out the key factors affecting forest insurance demands. By theoretical analysis and case study, following conclusions have been reached:The vocation of households can affect the willingness of farmers of applying forest insurance. The higher revenue the household with sideline occupation get, the more positive they are to forest insurance. The number of disasters happened in the administrative village that the household is located at can affect the willingness of forest insurance. The forest disasters happened in the administrative village that the visited forest farmers are located at can affect their decision-making of buying forest insurance. GDP per capita affects forest farmer’s willingness of buying forest insurance. The higher the GDP per capita is, the higher the insurance proportion is. Wood production affect forest farmer’s willingness of buying forest insurance. The more developed forestry the place is, the forest department pays more attention to forest insurance, and the strength of related propaganda and subsidies may be greater, and so forest farmers’motive of buying forest insurance is naturally stronger. Based on the conclusions from case study, six pieces of suggestions are brought up for forest insurance of Fujian province:develop the mul-tifunction of forestry and promote the revenue of forest farmers; pay attention to propaganda and raise the risk awareness of forest farmers; consider tax discount and help insurance companies explore insurance channels; develop the kinds of forest insurance according to the local features; reposition forest insurance and promote the development of forest insurance; increase the subsidies of forest insurance and reduce the burden of forest farmers.This research makes innovations on research perspective and research method. After absorbing predecessors’research methods, this research sets up double logistic model of micro level and macro level to analyze factors influencing demand for forest insurance and identify the key factors.