Research On The Problems Of Policy Agricultural Insurance Premium Rate Determination Based On The Wheat Insurance In Hebei Province

In recent years,reform and development of rural areas in China are continuously deepening,agricultural modernization of our country has been accelerated. Promoting the development of policy agricultural insurance is one of the most important jobs of rural reform and development. The Chinese government pays high attention to the development of agricultural insurance. Thanks for the central policies, agricultural insurance showed high speed development trend. After ten years of development, policy agricultural insurance in China has explored a variety of agricultural insurance managements. The subjects of this business are growing, which is now up to 29, and have established a national service network to provide agricultural insurance. But there are also many problems in the process of rapid development which cannot be ignored, such as inaccurate premium rate of agricultural insurance, unreasonable pricing of agricultural insurance products and big differences of the rate in different areas, which directly relate to the sustainable development of policy agricultural insurance.This article mainly elaborated the basic theory of pricing agricultural insurance rates, and analysis the existing problems in pricing agricultural insurance rates based on the development situation of the agricultural insurance in China. This paper uses the data of the output of wheat per unit area in Hebei province during 1978-2013 to do the empirical analysis. The first thing is to use Eviews to test the stationary of data, and then build a trend model for the time trends data, and use that model to deal with the trend of the wheat data in Hebei province. At last, use the yield distribution model to set the premium rate of wheat insurance in Hebei province. There is a gap in premium rate of wheat insurance between reality and theory. The premium rate of wheat insurance in Hebei province is 5%,it’s lower than the rate which is measured by the distribution model derivation method of yield per area. This paper analyses the reasons of the low level of the current rate based on this conclusion, and give some suggestions for the development of the determination of agricultural insurance premium rate.The main innovation of this paper is analysis the existing problems in pricing agricultural insurance rates based on the empirical analysis of wheat insurance in Hebei province, and analyzes the differences between the practical and theoretical. Although many scholars at home and abroad have had the theoretical study of pricing agricultural insurance rates and did a lot of empirical researches, the studies of the existing problems in pricing agricultural insurance rates in our country are very few. This article not only enriches the theory of agricultural insurance rate research to a certain extent, but also has reference values for insurance companies to price agricultural insurance rates reasonably.