Insurance Premium Rate Determination Based On Risk Zoning

With the development of economy and society of industrial,agricultural price scissors showed a growing trend for small-scale production.Because of the rising cost of farming,farmers income declining;although the national grain purchase price protection policy,but the policy is not covering the main food crops in the whole China,especially corn,as one of the three major grain is not covered;agriculture as a weak industry,easily affected by various kinds of risks,especially in the face of serious natural disasters,farmers often suffer huge economic losses.The corresponding is that migrant workers income was significantly higher than that of grain yield reality.There are many regions of the arable land occurring abandonment phenomenon.The main reason is that agricultural production lack of protection,especially for large grain,they need more an insurance product can reduce their losses in the event of a natural disaster.Agricultural insurance is the world trade organization within the scope of the measures to support agriculture.It is the world's major countries to support the development of agricultural practice.North America,Europe and Japan have established a sound agricultural insurance system,and both of which have played a positive role in agricultural production in their respective countries.The time of China's agricultural insurance began in the early days,but the twisted and turned,until 2007 by the state finance to allocate special funds to the agricultural insurance in six provinces,China began the agricultural insurance policy more standardized.Today,agricultural insurance has been in full swing in China,in reduce the impact of natural disasters on agricultural production,stabilize the income of farmers,and promote the development of agricultural economy it has played an important role.Henan province is the country's largest grain producing province and the largest agricultural province,but the natural disasters occurred in Huang Huai basin frequently.With the development of the market economy natural disasters have seriously affected the enthusiasm of farmers to grow grain.Henan Province agricultural insurance coverage rate is far lower than that of the Eastern provinces.One reason is lack of financial input.More important reason is that the insurance premium design is not reasonable,lack of attraction to farmers.This paperbased on the data of 17 prefecture level cities in Henan Province,author makes a study on the corn insurance in province from the following aspects: the risk assessment of agricultural production,the risk zoning and the determination of the premium rate in Henan province.The study found that agricultural production risk exists different in cities of Henan Province.In the south and west of Henan Province the agricultural production risk is relatively high.Zhengzhou surrounding cities with lower risk and the corn insurance rates in different regions were also significantly different.