| Hunan Province is located in the area of mid-subtropical evergreen broad-leaved forest, which is prone to various forest disasters. In recent years, frequent natural disasters including flood, drought, blizzard and frost caused huge losses to the forestry industry, forest management units and foresters in Hunan. In practice, as an important strategy and market mechanism to avoid non-systematical risk of forest management, a reasonable forest insurance will not only alleviate the risk in forestry industry to some extent, but also effectively motivate the foresters.In this paper, based on the case analysis of the commercial forest insurance in Hengyang City, Hunan Province, several research methods including literature analysis, field investigation, consultation from experts, qualitative and quantitative analysis are used to investigate the current status of forest insurance in Hunan, summarize the current status and existing problems of the commercial forest insurance practices, and analyze the causes of those forest insurance problems in Hengyang City. It shows that,(A) there are progress in the forest insurance business in Hunan in recent years: A) the risk awareness of the foresters has been further improved; B) the environment of the forestry industry development has been further optimized; C) the achievements of the forest reform are effectively consolidated;(B) the problems of forest insurance practices in Hengyang City are prominent: A) the insurance awareness of the foresters is weak due to their low income; B) It is quite difficult for insurance companies to survey the scenes and it takes long time to carry out the commercial forest insurance business; C) propaganda from the government is weak and relevant policies are inadequate;(C) there are various factors affecting the forestry practitioners’ participation in the forestry insurance in Hengyang City: A) the forest management units and the foresters are not actively participant due to lack of knowledge of forest insurance; B) the insurance companies are lack of skillful staffs to completely process claims and the forest insurance is not well publicized; C) the supportive policies provided by the government are inadequate and the effect of government financial subsidy is limited.Finally, the strategy to motivate the sustainable development of the forest insurance business in Hengyang City is proposed in this paper:(A) foresters need to improve their insurance awareness;(B) the insurance industry needs to reconstruct their mechanism of forest insurance;(C) the government should make more efforts to support forest insurance. |
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