Performance Analysis Of Agricultural Insurance Financial Subsidy In Anhui Province

As a fundamental industry,agriculture associates with people's life strongly.At the same time,impacted by natural conditions,it is a vulnerable industry.Agricultural insurance,a Green Box Policy that supports the development of agriculture,has obtained the protection of World Trade Organization and received substantial supports from the government.Since 2014,agriculture has been active in No.1 document issued by the national central government all the way;therefore,the agricultural insurance rose in response to the proper time and conditions.In 2007,development of Chinese agricultural insurance has entered into a new epoch.In 2004,China carried out the experimental units of policy-guided agricultural insurance.In 2007,six provinces including Inner Mongolia,Sichuan,Jilin,Xinjiang,Hunan and Jiangsu were affirmed as the first batch of experimental units that enjoyed the premium subsidy of agricultural insurance.In 2008,the experimental units were unceasingly expanded which brought Anhui into its scope.In 2012,ten provinces were affirmed as the region of experimental units for agricultural insurance,indicating that agricultural insurance's premium subsidy policies have entered an overall stage of development in China.Since the initiation of government's premium subsidy policies regarding agricultural insurance,the experimental region has achieved remarkable performance.However,there were many problems behind the performance: the inadequacy of subsidized types of insurance,less specific subsidy standard,moral issues,adverse selection issues,etc.When the experimental financial subsidies of agricultural insurance run its normal course,China began to research its effects.In 2011,the performances of premium subsidy were evaluated for the partial experimental regions,and the first experimental regions to be evaluated included Sichuan and Inner Mongolia.In 2012,Anhui and Jiangsu province were added into the evaluation scope.Since the implementation of fiscal subsidies policies,it was found out that the policies were conducive to breakthrough of agricultural insurance in Anhui.However,there werealso many problems,for instance,the scale of subsidy failed to follow insurance demands;the standard of subsidy adopted “one size fits all” which failed to meet the specific conditions;policy propaganda had some defects;additionally,services of the insurance company were unable to keep pace with the development,resulting in several farmer's superficial understanding towards policy of fiscal subsidies in agricultural insurance as well as low policy evaluations;in addition to the reduced effective demands of farmers on agricultural insurance,fiscal subsidies failed to produce the best possible results.Thus,it is necessary to make reasonable evaluation to the efficiency of fiscal subsidies for agricultural insurance so as to promote the development of issues of agriculture,farmer and rural area in Anhui,promote the agricultural insurance policies to benefit the farmers,achieve the maximal efficiency of financial capital subsidies for agricultural insurance,and play the assistor function of insurances.