Analysis On The Operation Mode Of "Insurance Futures"

Agriculture is one of the most basic industries in the national economy,and document No.1 of the Central Committee of the people’s Republic of China in 2019 also mentioned the importance of protecting the safety of national rations.Since 2004,the state has successively issued supporting policies to safeguard the interests of agricultural producers,such as the minimum purchase price of agricultural products,the temporary collection and storage of agricultural products and other corresponding policies,but these policies are constantly facing new challenges with the development of agriculture.Policy trust,traditional agricultural insurance these old roads face the development of agriculture in the new era appear to be dwarfed.In order to actively respond to the Party’s call to serve the "three rural areas",solve the problem,and deal with the price fluctuation of agricultural products to agricultural production and management.Futures exchanges and futures companies actively explore new ways to serve agriculture,rural areas and farmers.Futures exchanges and futures companies actively develop the types of agricultural futures varieties.Since 2015,the Central Committee document No.1 in four consecutive years has clearly defined the development and application of "insurance futures" in China,but compared with the development degree of agricultural insurance in the two developed countries,the United States and Canada.Compared with the first two countries,there is still a certain gap in the development of agricultural insurance in this mode of "insurance futures" in China.It is also necessary to further explore and perfect the transportation of "insurance futures" suitable for the development of agriculture in China.Make a pattern.For example,join order agriculture,introduce banks as a source of credit,and so on,so that financial institutions can better serve agriculture,rural areas and farmers.This paper takes the successful corn pilot project between CITIC Futures and China United property Insurance Company as an example.Firstly,this paper briefly introduces the development of "insurance futures" at home and abroad,analyzes the characteristics of "insurance futures" in our country and the advantages of the operation of this mode.Secondly,it introduces the case,expounds the background of the case cooperation,the general situation of the multi-participants and the concrete project plan,and analyzes the operating conditions of the model.Finally,it systematically analyzes the risk and benefit of the case cooperation.This paper expounds the risk and hedging of the participants in the project,and gives the benefit of the case from the perspectives of socio-economic entities and national macro-level.This paper analyzes and gives reasonable suggestions on the practical feasibility of promoting "insurance futures" in China,such as perfecting the structure of futures market for agricultural products,speeding up business innovation by futures companies,and improving the ability of risk management by insurance companies and agricultural producers.Introduction of strong agricultural products upstream acquisition enterprises and so on.