Insurance Classification Ratemaking For Crop Farming In Hunan Province

Agriculture is the foundation of the national economy, so the related work is ofgreat social significance in China. Agricultural insurance can help stabilize farmers’income, fasten agricultural restructure and achieve national macro-control of theagricultural industry, which makes it one of the important tools of agriculturedevelopment. However，with short practical experience, lack of effective underwritingdata and loss data, there is few accurate and effective technical support to makeagricultural insurance pricing and keep the insurance rate reasonable. Thus, based oncareful attention during the start-up, a sole price is applied around the country. Thesole price makes agriculture insurance really simple. Mean-while, it leads to adverseselection and moral risk. According to actuarial theory, when the policy poor is bigenough, adverse selection and moral risk can be settled by rate differentialaccording to the risk characteristics of different individual risk.This thesis describes the basis of various risk classification ratemaking methods,combined with the Hunan provincial policy crop farming insurance operating data andclimate data mainly by generalized linear mixed models, generalized linear modelsand combining policy agricultural insurance in crop farming Insurance ratesclassification ratemaking study conducted by the empirical analysis resultsgeneralized linear mixed model is more suitable for agriculture insurance ratesdetermined conclusion. While in the practical implementation of such pricing method,requires that the agricultural insurance market needs to be refined and improved, anda number of policy recommendations have been made.