Study On The Impact Of Agricultural Insurance On Rural Residents’ Consumption

In the report of the 20th National Congress of the CPC,we found that the most arduous and burdensome work in China is still in rural areas,and our grassroots work is still the most extensive and profound.If we want to fundamentally solve the problem of rural poverty,we should start with the income source of farmers,and grasp the key point to solve the problem of agricultural economic development first.It is impossible for farmers to escape agricultural risks in agricultural production and management,and the formulation and implementation of agricultural insurance can realize the effective diffusion of agricultural risks on the premise of ensuring farmers’ income.The guarantee function of agricultural insurance can transfer agricultural risks from high-risk farmers to low-risk farmers,so as to achieve the purpose of risk diversification,alleviate the income fluctuation of farmers,make their income stable,and further improve their consumption tendency.At the same time,the compensation function of agricultural insurance can make use of the government’s insurance premium subsidies and insurance compensation after disasters,so as to provide a kind of guaranteed income,which can not only improve the income of farmers,but also improve the effective consumption demand of rural residents.Based on the theory of lasting income and the theory of preventive savings,this paper reviews domestic and foreign literature and constructs a panel data model to study the impact of the development level of agricultural insurance in 30 provinces(autonomous regions and municipalities directly under the Central Government)on the total consumption of rural residents in China from 2011 to 2020.First,the theoretical analysis of how agricultural insurance has an impact on the consumption of rural residents;Secondly,the panel regression model is established to explore the impact of agricultural insurance on rural residents’ consumption,and the research conclusion is drawn from the empirical results.Finally,according to the research conclusions,the corresponding countermeasures and suggestions are put forward.The results show that agricultural insurance in rural areas of China has obvious promoting effect on the consumption level of rural residents.The aging of the rural population,the level of urbanization and the level of financial support for agriculture all positively promote the improvement of the consumption level of rural residents,while the industrial structure negatively inhibits the development of the consumption level of rural residents.According to the research in this paper,based on the current situation of agricultural insurance development in China,in order to improve the consumption level and ability of rural residents and promote the benign development of agricultural insurance in China,it is necessary to improve the difference of the level of agricultural insurance guarantee,strengthen the publicity of agricultural insurance,strengthen the construction of agricultural insurance personnel,and effectively prevent moral hazard.Maintain and implement the policy of agricultural insurance for a long time to ensure that agricultural insurance can improve the quality of life of rural residents and play its unique role in realizing rural revitalization.