Analysis Of Agricultural Insurance Needs Factors And Weather Index Insurance Research

Agricultural insurance is one of the most significant insurances in China, and it is also an important means to transfer agricultural risk. Meanwhile, agricultural insurance has great influence on stabilizing agricultural economy, popularizing agricultural technology and guiding the adjustment of industrial structure. However, because of its regionalism and periodicity, the development and promotion are dragged by limited management and technology. It is essential for China to study the needs factors and to develop the new agricultural insurance since the development of agricultural insurance is slow. The paper established the structural equation model of the will that farmers purchase agricultural insurance on the basic of theoretical model of agricultural insurance benefits. The study showed the following results.1. Purchasing power of farmers and service benefit of agricultural insurance push the purchasing will while investment preference limits it.2. Purchasing power is the largest impact on the will of purchasing agricultural insurance, followed by the investment experience and preference.3. According to empiricism, the greater investment preference affects, the lower purchasing will will be. The development of agricultural insurance is limited by quite a few factors. In order to satisfy larger demands, the paper came up with a new way, weather index insurance.The objective of research was to design weather-based index insurance contract for Nectarine, to provide technology for policy-guided agricultural insurance. Based on relationship between Nectarine yield loss rates and weather factors, weather index of Nectarine freeze damage was designed. With weather data and Generalized Extreme Value distribution, we calculated the pure premium rate. Based on the advantage of area yield crop insurance and weather index insurance, weather-based index insurance contact for Nectarine freezing was designed. At the end of the paper, suggestions for policies were put forward to promote the recent advance of agricultural insurance.