The Inner Mechanism Analyze Of Micro-insurance Sharing Microfinance Risk

Microfinance as an internationally recognized can help low-income population,especially one of the most effective way to low-income farmers out of poverty. Indeveloping countries this is an important financial innovation, it to the rural financialdevelopment has an important status in our country. It in the adjustment of credit marketstructure, increase the supply of credit and optimize the industrial structure and to solvethe low income of farmers and those on low incomes have played an important role.Farmers microcredit in rural financial status rise ceaselessly, the scale of our country tocarry out the farmers microfinance institutions are gradually developing. But, withChina’s farmers microcredit in rural overall, because of the risk sharing system mainresponsibility is not clear, less participation mechanism, hierarchy, and other issues notclear, many problems appeared before us, in some areas of peasant householdmicrofinance payments deteriorating year by year, the good farmers microcreditsustainable development brings the serious influence. Therefore, it is necessary toestablish a reasonable and effective risk sharing and transfer mechanism to reduce thecredit risk of small farmers. In recent years, countries have introduced a low premium,moderate protection, the micro insurance policy is plain and simple, mainly to provideservices for farmers and the low income crowd, as financial effective means for povertyalleviation, has become an important part of small micro finance in China. Theemergence of small insurance from a certain extent, can be a means to share the risk offarmers microcredit, but it can effectively share the risk of farmers microcredit, sharethe effect how, through the mechanism of how to share, but no one were discussed.Based on this, in this paper, in combination with the domestic existing "smallinsurance+farmers microcredit" development model, based on the field investigationcombined with zhejiang, in economics, risk management as the theoretical basis ofquantitative analysis method, first introduced from the aspects of the theory of ruralmicrofinance market oriented to conduct a comprehensive analysis is reasonable. Then,in view of the small insurance as tools to share the risk of farmers microcredit, from theperspective of economics, through the method of game theory to analysis ofmicrofinance institutions, insurance agencies and risk-sharing mechanism between thethree of farmers. Second, the empirical aspects: from the perspective of farmers, inzhejiang province hangzhou, jiaxing, taizhou, wenzhou, tongxiang five farmers tookaim at the situation of microfinance in one-on-one questionnaire, obtain first-handinformation as based on the empirical analysis, using Binary Logistic model to carry onthe empirical analysis. By empirical analysis, demonstrates the small insurance canshare the risk of farmers microcredit, the results show that the cultural level, familyincome, head of the household cultivated land area is small, whether to buy insurance,the total amount of the small loans and loan interest rates dramatically affects thepeasant household is the restraint of microfinance, and farmers to purchase smallinsurance amount is larger, the more significant effect on farmers get small loans.Finally, on this basis, by improving the current small loans and the interaction mechanism of the small insurance countermeasures and Suggestions, hope tomicrofinance country combined with the development of rural micro insurance financialreform has inspired some help.