The Impact Of Fiscal Subsidy On Fishery Mutual Insurance

To push forward the construction of the modern marine fisheries and to improvedisaster prevention ability, safeguard mechanism adapted to modern marine fisheriesmust be established, including marine fishery risk prevention. One of important contentsof fishery risk prevention mechanism is to develop marine fishery insurance.Developing marine fishery insurance is one of reasonable use of WTO rules. It perfectmarine fishery protection system and improve the ability of breeding fishing. It is one ofnecessary measures to enhance the international competitiveness. From the view of themarket demand, the income level of coastal fishermen on the low side overall, lackingability to pay in Marine fishery insurance premiums. From the perspective of the marketsupply, the demands of profits for commercial insurance company makes the market offishery insurance with high loss ratio gradually shrink. Under the interaction of supplyand demand factors, business in commercial marine fishery insurance market atrophyfast. Under this background, the existence of the Marine fishery mutual insurancecompensates the lack of commercial fisheries insurance market, playing a certain role infishery risk prevention mechanism. Fishery mutual insurance consists of individuals orgroups that have the same security requirements. As marine fishery mutual insuranceorganization is non-profit social organization, compared with commercial insurancecompanies, the economic strength of the association itself is very weak. The income ofmembership is generally at a low level. As fishermen can’t pay premiums relying ontheir own economic ability and the coverage of marine fishery mutual insurance is at alow level, the fisherman’s production risk can’t get effective guarantee. ZhejiangProvince carried out the policy of fishery mutual insurance in2005. It is the first tocarry out the policy of fishery mutual insurance in practice. Therefore, to improve thefishery risk guarantee system, to promote the sustainable development of the marinefishery insurance, it has great theoretical and practical significance to study the impactof fiscal subsidy on fishery mutual insurance, based on Zhejiang coastal fishing areadata in this paper.This paper puts the theory of fiscal subsidies as a starting point and introduces thecharacteristics of marine fishery production and the characteristics of mutual insurancerisk. Then it introduces the policy of Zhejiang marine fishery mutual insurance subsidies and the current situation of development of mutual insurance.Based on the date of Zhejiang costal fishing area, study the impact of fiscal subsidyon fishery mutual insurance. It can be found that the subsidy policy has significantlystrengthened the will of participating in mutual insurance. On the basis of the empiricalresults, this paper puts forward suggestions how to optimal design the policy of fiscalsubsidies on fishery mutual insurance.