Research On Cotton Price Insurance Product Design In Xinjiang

Cotton is an important cash crop.China implemented the policy of temporary purchase and storage of cotton in 2011 and the reform of target price of cotton in Xinjiang in 2014.The successive implementation of the policy has played an important role in stabilizing domestic cotton production and safeguarding the interests of cotton producers,but some problems have also emerged.Against the backdrop of poverty alleviation and rural revitalization strategies,the No.1 Document of the CPC Central Committee in 2017 and 2018 successively proposed to further develop the futures and options market for agricultural products,and steadily expand the pilot program of "insurance + futures".In order to continue to promote market-oriented reform of cotton prices and explore new ways to solve the problems exposed by the reform of cotton target prices,Xinjiang launched a pilot cotton price insurance scheme in 2018.Cotton price insurance is a policybased agricultural insurance policy,which is led by the government,operated by insurance companies and jointly implemented by government and enterprise.The main contents of cotton price insurance are as follows: the government sets the target price of insurance.If the target price of insurance is higher than the average price of cotton market,the insurance company shall fulfill the obligation of cotton price insurance payment to the applicant according to the insurance contract.If the average market price of cotton is higher than the insurance target price,the insurance company will not pay the insured.From the policy of temporary purchase and storage of cotton in 2011 to the change of target price of cotton in 2014,and then to the pilot of cotton price insurance in 2018,we can see that the state attaches great importance to the cotton industry and the development direction of cotton policy marketization.In this context,cotton price insurance products are designed for Xinjiang to ensure the promotion and implementation of cotton price insurance,stabilize China’s cotton production from the supply side,improve the quality of cotton,and meet the needs of the transformation and upgrading of the textile and clothing industry to promote the high-quality development of China’s cotton industry.In this paper,the logical structure,first of all,cotton support policy status analysis,put forward questions;Second,analyze the necessity and feasibility of cotton price insurance,and set the target of cotton price insurance and how to solve it.Thirdly,design cotton price insurance products to solve problems;Fourthly,it makes a positive benefit analysis on the participants of cotton price insurance,which explains why the government departments,insurance companies and cotton producers are willing to participate in cotton price insurance.Fifth,put forward the measures to promote the cotton price insurance.Accordingly,this paper is divided into the following parts.The first part is the introduction,mainly introducing the background,significance,content,method,innovation and deficiency of the research,as well as the literature review on price insurance and product design at home and abroad.The second part is the definition of the concept and the theoretical basis.Firstly,it introduces the concepts related to the reform of cotton target price and cotton price insurance.Secondly,it expounds the main theories applied in this paper,including the theory of agricultural support price policy,risk management theory and welfare economy theory.The third part demonstrates the necessity and feasibility of cotton price insurance and then puts forward the insurance target of cotton price insurance in China.The fourth part is the cotton price insurance product design research,mainly carries on the design from the concrete insurance product clause,including the insurance subject matter,the insurance liability,the insurance amount and the insurance period and so on contents,at the same time carries on the elaboration and the explanation to some specific provisions of the insurance clause.Finally,it is the other matters needing attention of insurance products,including premium income and allocation,insurance company risk diversification mechanism.The fifth part analyzes the positive benefit of cotton price insurance to all participants.The sixth part,based on the above research,discusses the three participants: the government,the insurance company and the cotton producer,and proposes the guarantee measures for each participant to implement the cotton price insurance.After complete cotton prices insurance product design,this paper cotton prices insurance participation main body,promote implementation of cotton prices insurance protection measures are put forward: the government should introduce policies to promote cotton prices insurance implementation,strengthen the enterprise cooperation,to provide necessary assistance to the insurance company,and with duty-free access to the premium income of insurance company investment,ease restrictions on investment;Insurance companies should integrate multi-channel resources,actively cooperate with the government,strengthen the publicity and promotion of insurance products,and enhance the awareness of independent service;Cotton producers should actively cooperate with insurance companies to improve their own quality and take the initiative to avoid moral hazard.