Study On The Dilemma And Countermeasures Of Agricultural Insurance Development In China Under The Background Of New Urbanization

As an important part of the agricultural risk management tools, agricultural insurance is an efficient mechanism arrangement in avoiding、transferring、sharing agricultural risks and compensating for losses. Agricultural insurance, as a "green box" policy that consistent with WTO Agreement, should become the regular measures in risk management, while other traditional instruments facing more limitation.The development of agricultural insurance in China has a history of more than80years. In early years, many attempts turned out to be a failure. After the foundation of People’s Republic of China, the development of agricultural insurance will enjoy its prosperity.Now, the construction of new urbanization is raised up to the national strategic level. The new urbanization is not only the modernization of the city, but also the modernization of agriculture. This new circumstance provides the agricultural insurance a new opportunity. Therefore, new research and analysis on the agricultural insurance under the background of new urbanization have very important theoretical and practical significance.Different from other types of insurance, agricultural insurance is not a pure private goods, but a quasi-public goods. The property of agricultural insurance determines that the agricultural insurance should insist on a different path. And the government should play a key role in the development of agricultural insurance. Previous exploration of the pattern of agricultural insurance development often fails to recognize the right properties of agricultural insurance.This paper makes full use of the previous studies, and by using the qualitative analysis method, we get a good interpretation of agricultural insurance from three different aspects. Then, we define the agricultural insurance as the quasi-public goods, according to the public product theory. After reviewing the history of the development of agricultural insurance, we use the empirical method to evaluate the achievements of agricultural insurance development. Based on the comprehensive analysis of risk retention disaster relief and agricultural insurance, we discuss the importance of building a comprehensive risk management system.Combined with the background of rapid advance of urbanization, we discuss the advantage and disadvantage of the trends, including the promotion to the production and the increase of risk exposure. After that, we discuss the relationship between new urbanization and agriculture insurance. Also, we reveal the dilemma of the agricultural insurance from three aspects. Finally, the paper lists five measures to promote the healthy development of the agricultural insurance.The main conclusions of this study are:Firstly, according to the public goods theory, we define the agricultural insurance as quasi-public goods. The failure of agriculture insurance market needs the active involvement of the government. By providing some premium subsidies, the government should keep the insurance market maintaining operation.Secondly, through the comparative analysis of risk retention disaster relief and agricultural insurance, we find that these three methods both have its irreplaceability. Therefore, building a comprehensive risk management system is the best way to manage the agricultural risk.Thirdly, by analyzing the connotation of new urbanization, we can discuss the advantages and disadvantages of the new urbanization, including the promotion to the production and the increase of the risk exposure. These new changes build the contact between new urbanization and agricultural insurance.Fourth, in the aspect of system construction, the issue of Agricultural Insurance Act breaks the situation of lacking specialized laws in the fields of agricultural insurance. Even so, we still have a long way to go. Especially when considering the reality that the act is in terms of big principles, relevant supporting measures still need to be further refined.Fifth, in the aspect of financial subsidies, there exist the problem of the shortage of amount and the lack of efficiency. Though, the amount of financial subsidies to the agricultural insurance is increasing year by year, there still exist a big gap compared with those mature countries. Therefore, when launched the subsidy policy, the government should pay more attention to the aspect of motivation and restriction.