A Study On Premium Rate Based On Risk Zoning

Southern region of Hunan province is a national advantageous region in citrus industry.Also,citrus planting area,yield and output value for five consecutive years ranks the top,but the high temperature,low temperature,drought and other natural disasters always threat citrus growth.As "stabilizer" in the production of crops of citrus yield insurance failed to give full play of the diversification of risk and utility of loss transferring.The reason is that we take a single premium rate system at present,also regional disaster risk associated with premium prices serious don't match.This paper studies on citrus insurance rates based on the risk zoning of citrus insurance in southern Hunan province.The study on citrus insurance in southern Hunan province was carried out mainly from the risk grade division and citrus insurance rate in southern Hunan province.In risk hierarchy section,the main theories include the principle of risk dispersion,the theory of valence exchange and the theory of agricultural meteorology.Ten indicators were selected as the initial analysis indicators for factor analysis,including Daily average temperature 10 ? or higher,the high temperature days above 35 ?,extreme minimum temperature,precipitation percentage,average annual precipitation,annual sunshine hours,production rate,the ratio of citrus planting area of cultivated land area and total agricultural acreage,coefficient of single yield variation.This paper uses factor analysis and cluster analysis to carry out risk classification.According to the results of the risk zoning,20 citrus counties in the southern Hunan region were divided into 4 categories,low-risk areas,lower risk areas,higher risk areas and high risk areas.Based on the risk zoning results,the premium rate of citrus premium is calculated.The first step is to apply the normal distribution,Gamma distribution and Weibull distribution parameter model to match the rate of the citrus insurance,and to obtain the premium rate of the insurance that matches the regional risk.And the average pure rate is 0.989%.In the second step,to correct the estimation rate while the risk level obviously not corresponding to the estimation rate.The average level of the adjusted premium rate is 0.9412%.The revised insurance rate and the rate range of the insurance are significantly improved.Southern Hunan ranking citrus production pure insurance rate in the region in line with "higher risk region > high risk region > low risk area > lower risk area" level of risk zoning arrangement.The set rates show that it is the great way to ensure the objective and fair insurance plan,and to control the false insurance,false claims accident.This study through empirical simulation methods to get the differential insurance rate range that matches the regional risk.the actuarial technique is used in the agricultural insurance as a kind of practice,but also used as a try of providing quantitative reference for the local insurance rate policy.