An Analysis On Planting Insurance Developments And Problems In China

Planting industry is the foundation of agriculture, planting insurance is the most important business categories in agricultural insurance, and is also one of the most unique coverage in all of the insurance business. The developed countries use planting insurance realize the national welfare growth, but the purpose of developing countries is spreading agricultural risks, improve farmers’motivation and achieve food supply security. Planting insurance is a coverage which is the easiest to get the financial support at all levels. Policy-oriented agricultural insurance of our country begins in2007and the scale premium of planting insurance yet still accounts for more than75%of agricultural insurance premium income. Our country strongly supports the development of planting insurance, and hope to establish a market-oriented risk protection system as soon as possible, perfect rural financial service system. Since2007, planting insurance has developed rapidly, and has made many achievements, premium scale, coverage area and the assurance level increased year by year, the subsidy system to be more perfect, agricultural insurance company’s operational efficiency continues to improve, but there are many problems in development. Through research on the risk features, management system and technical, and in view of the existing problems, this paper puts forward a series of policy suggestions.In order to have a systematic study the developments and problems of planting insurance in China, the author analysis related research papers at home and abroad, and our country agricultural insurance data in recent years. Not only discussed the developments of planting insurance from the aspects of insured subject, insurance capacity and the policy support, also the deficiencies, for instance, have a low security levels and compensation ability, subsidy mechanism design and implementation have flaws, often damages the interests of the insured farmers, etc. Finally, by analyzing the data, and finding the problems, the paper is based on the conditions of planting insurance in China, puts forward some policy suggestions to promote the further development, in order to make our country’s planting insurance can reach the world’s leading level in scale and quality.This paper will be divided into five parts, the main research contents and main points of each chapter are as follows:The first chapter is introduction, mainly introduces and analyzes background of the research, research meaning, research status in domestic and foreign, research methods, main characteristic and the insufficiency. On the basis of the literature at home and abroad, this paper expounds the nature of planting insurance, a common existing problem in the process of development and technological innovation.The second chapter is the overview and effective analysis of planting insurance, which is divided into three sections. The first section is an overview of planting insurance, including the concept, the underwriting risk and subsidies product category; The second section is an analysis on business data of planting insurance, has carried on a statistical description which mainly from the premium scale, covering area and level of subsidy and so on. The third section is a analysis on the planting insurance development effectiveness, this section has summarized the developments, mainly from the premium scale, covering area, rating making, agricultural insurance company’s operational efficiency, performance evaluation of financial subsidies and characteristics of planting insurance pilot.The third chapter is analysis on the problems of planting insurance in our country. Through the analysis of current development data, this paper argues that the main problems of planting insurance:insurance coverage is limited, risk guarantee level and the role of compensation for farmers is limited; subsidies performance and subsidy mechanism remains to be improved; insurance company management is not standard, have a inadequate protection for the farmers’interests; planting insurance rates set unreasonable; the related supporting policy is not perfect, lacks enough supervision, etc.The fourth chapter focuses on the development of foreign, mainly for the world’s three largest planting insurance countries--the United States, Japan and Canada. Their insurance characteristics and development experience are analyzed and summarized, in order to improve the planting insurance system in China and management technology innovation. Studies suggest that moderate compulsory insurance, diversified way of subsidies and perfect catastrophe risk dispersing system are worth learning.The fifth chapter is the suggestions to promote the development of planting insurance in China. This chapter based on the analysis of third chapter, combining the situation of the planting insurance development and the existing problems, puts forward the suggestions to promote the development of planting insurance. Mainly include:improve the guarantee level of planting insurance, improve the service level of insurance institutions and increase the supervision and administration for insurance companies, improve the system of subsidies and relevant supporting policies, divided into appropriate risk area and set out insurance rates by region, strengthen the performance evaluation of financial subsidies, set up planting insurance catastrophe risk transfer mechanism etc.The main features and innovation of this paper are as follows:First, the paper analyzed and summarized planting insurance developments and problems in China from2007to2013. At present, there are many domestic scholar literatures on the study of the supply and demand, the literature is focus on the features and problems of the regional development gradually increased, but the analysis on the effectiveness of planting insurance is not enough. Planting insurance has developed rapidly in recent years, not only in the covering areas, security levels. This paper is based on the latest data, elaborates the development of planting insurance from the premium scale, covering area, rate making, security level, agricultural insurance company’s operational efficiency, performance evaluation of financial subsidies and planting insurance pilot, which have some research characteristics.Second, in terms of the analysis on premiums performance, from the point of the influence for farmers and efficiency of insurance companies, discuss the deficiency of premiums for performance, and put forward the suggestions.Third, the research of this paper is focus on the planting insurance development policies, analysis item by item, to find the advantages and disadvantages of every policy changes. Especially in terms of how to improve the security level of planting insurance, the paper provides two feasible ways: innovation subsidy mechanism to improve the level of security, innovation the lanting insurance products to improve the level of security. The strategies have the certain innovation and the application value.