Case Analysis On “Insurance Plus Futures” Risk Management Of HTCC Company

As the foundation of China’s economic development,agriculture plays a vital role of China’s economy,and China’s agricultural price formation mechanism is gradually market-oriented with the acceleration of China’s supply-side structural reform.However,in the context of globalization,the price risk of domestic agricultural products is gradually expanding influenced by the international transmission mechanism.Therefore,it is of great significance to protect farmers’ income and promote China’s agricultural development by studying how to use financial services for agricultural and rural development,and how to use financial tools to carry out efficient and reasonable risk management of agricultural prices.Since 2016,the No.1 Document of the CPC Central Committee has proposed steadily expanding the "insurance + futures" pilot program for several years.As a powerful measure to support agriculture and benefit farmers,the "insurance + futures" pilot program has been repeatedly included in the national strategic plan for rural revitalization.The "insurance +futures" risk management model is an effective guarantee to stabilize the income of farmers and agriculture-related enterprises,and also a major breakthrough in helping farmers lift themselves out of poverty,serving rural revitalization and promoting agricultural modernization.This paper adopts the case analysis method,the comparative analysis method and the literature research method.Through the analysis of the HTCC company’s "bank + government+ insurance + futures" pilot project,it highlights great significance in financial service to the real economy,giving play to the role of market mechanism,and meeting the agricultural product price risks management demand of farmers and agricultural enterprise.This paper introduces implementation background,project participants,project risk management process and other basic information of the pilot project.Meanwhile,by analyzing each participation’s benefit,characteristics and effect of the pilot project,ways of using insurance and futures to manage the agricultural risk in foreign countries,as well as the domestic typical "insurance +futures" project cases,there are some advantages in the model and mechanism of the pilot project.And we can find out some major problems from the aspects of capital sources,insurance claim settlement and farmers’ risk management awareness,also the corresponding solutions adopted in the pilot project are analyzed and discussed.At last,this paper puts forward enlightenment from the aspects of the sources of project funds,futures market,insurance market,etc.,and provides reference for the further promotion and application of the pilot project model.