Research On Farmers’ Behavior In Participating In Agricultural Insurance In The Qinba Mountain Areas

In order to achieve the goal of building a well-off society in an all-round way,Chinese Thirteenth Five-year Plan proposes to help the seventy million poor people living in the undeveloped poverty areas out of poverty.These poor people live in the undeveloped poverty areas,which are the poorest areas in China with fragile ecology.The special natural,social and economic features in such areas make the households face a variety of risks.Carrying out agricultural insurance can help the households transfer their risks and stable their lives.However,the activeness of households’ participation in agricultural insurance is inadequate in these areas.Before developing agricultural insurance products and services,it needs to make it clear what influences the behavior of households in these poor areas and why China’s agricultural insurance participation rate at a low level.Based on the theory of behavioral economics,risk management and insurance,this paper makes a theoretical and empirical analysis on the behavior of households in Qinba mountain area and selects households’ risk cognition,insurance awareness and social capital as research factors.Exploring the different characteristics of households,weather there was a significant difference between the individual’s risk perception,risk insurance consciousness and social capital and households’ ability to bear.The empirical test of multiple correlation and difference has been used.At the same time,this paper based on the households’ survey data in Qinba mountain area,by means of Logit regression model for empirical analysis and draw relevant conclusions.The results of the final study show that:Firstly,the households’ behavior of participation in agricultural insurance based on the demand for agricultural insurance,and they will compare the risk cost,the way that is more convenient and more economical will be chosen.Secondly,social capital has a certain role in their decision-making.Households establish a network of relations through social capital,and individual’s economic decisions are embedded in the social network relationship between households,it can reduce the cost of searching information through information sharing.Social capital can build a bridge between agricultural insurance and households themselves.The more they trust the agricultural insurance,the insured enthusiasm is also higher.Thirdly,the behavior of households will be affected by a variety of factors.Some of them are significantly influence the households’ behavior when participating in agricultural insurance,such as age of households,whether there is a surplus,the number of risks,whether is the village cadres,the role of relatives and friends when difficulties,if they had received the compensation of insurance company,the function of insurance.While the households’ education degree,considering the risk,the attitude to risk,frequency of relative number and frequency with the gift of no significant impact on the households’ participating behavior.Finally,on the basis of the above conclusions,this study puts forward some suggestions on the households’ participation in agricultural insurance.