The Research Of Catastrophic Risk Distribution Mechanism Of Agricultural Insurance Based On Reinsurance

Though the industry of our country is developing rapidly after the establishment of PRC, as the foundation of the national economy, agriculture has been hard to shake. The production and the development of agricultural is not only related to the interests of farmers and the modernization of rural areas, but also has a very important significance to social stability and the hence of people’s living level. Therefore, the Chinese government attaches great importance to the development of Agriculture The central document No.1has focused on the "Agriculture, Countryside and Farmer" issues for ten consecutive years. As a market-oriented manner of risk dispersion, agriculture insurance plays an irreplaceable role in increasing farmers’income and the development of modern agriculture. Also as one of the three measures to protect agricultural development, agriculture insurance obtained the sustained attention of government.With the increasing scale of agricultural insurance, it is still difficult to solve the catastrophe risk loss allocation problem. Catastrophe risk dispersion becomes the key to the further development of agricultural insurance. The No.1Document in2012emphasized that sound agricultural reinsurance system, and gradually establish a major agricultural disaster risk transfer dispersion mechanism under the central government financial support. But how to start the mechanism has became a problem which caused a lot of controversy. The various local governments throughout the country for catastrophe risk diversification mechanism construction test, such as the purchase of catastrophe reinsurance received wide attention from the Beijing Municipal Government, Jiangsu Province which explores the establishment of agricultural insurance catastrophe risk reserve system. Overall, our country for agricultural catastrophe insurance risk dispersion has not formed the system arrangement, even the role of government can play is also failed to form a unified opinion.This article is to start the research and analysis in this context. Base on the system economics, insurance, agriculture, and the theory of finance, the article studies on the catastrophic risk distribution mechanism of agricultural insurance which based on reinsurance. Starting from the definition of agricultural catastrophe insurance risk, agricultural catastrophe risk, and agricultural risk, also analysis the current situation of the present stage of our country provincial agricultural catastrophe risk diversification mode. Finally, to establish the government leading reinsurance system as the foundation, catastrophe risk dispersive fund system for agricultural catastrophe insurance risk guarantee dispersion mechanism.This paper is divided into five chapters. The specific content of each chapter is as follows:Chapter Ⅰ:Introduction. It is a background analysis and the overall plan for the entire article. First of all, on both practical and theoretical research of this writing significance. Secondly, the overview of the research situation, summed up the domestic scholars focus of attention is that "the role of government" and foreign research and practical experience.Chapter Ⅱ:The general theory of agricultural insurance catastrophe risk spreading mechanism. Base on the distinguish of agricultural risks, agricultural catastrophe risk, and catastrophe insurance risk of agricultural insurance, give a new definition of the third concept. Secondly, analyzed the four general institutional arrangements of agricultural catastrophe risk dispersion mechanisms, which are Agricultural Insurance, Financial Subsidies, Reinsurance and Risk Securitization.Chapter Ⅲ:Arrangements and their hidden analysis of the current system of agricultural insurance catastrophe risk diversification. Combined with the present stage of31provinces, municipalities and autonomous regions of agricultural insurance pilot position, the analysis of the current agricultural insurance system of catastrophe risk arrangements. In addition, through the agricultural insurance, the supply side and the demand side to promote the party, and three point analysis of agricultural insurance catastrophe risk is difficult to effectively disperse the hidden dangers.Chapter Ⅳ:Reconstruct the reinsurance mechanism of agricultural insurance. This chapter first introduces the reinsurance operation mechanism and the importance. And summarize the problems of reinsurance from different vision of company, market and government. Finally, choose the suitable model for China’s development of agricultural reinsurance.Chapter V:Building a government-supported agricultural catastrophe risk fund system. Combining with the current situation of the establishment of agricultural catastrophe risk fund, conclude the issues of the development stage. Construct the system from Financing channels, operation process and investment management.Innovation of this paper is that, classified the arrangement of Agricultural insurance catastrophe risk dispersion system into four kinds and analyze the defects. Also reconstruct the new mode of Agricultural catastrophe reinsurance and build the government-supported agricultural catastrophe risk fund system.