A paper on agricultural insurance

Agricultural insurance is a means of protection and relief for agricultural production. When farmers suffer heavy losses in natural disasters, agricultural insurance not only provides them with help and relief, but also is a risk transfer mechanism to deal with sudden risks, which plays an important role in ensuring farmers' living standards. The following is my paper on agricultural insurance for your reference.

Model essay on agricultural insurance 1: on government responsibility in agricultural insurance

In real life, farmers or farmers are limited to their own economic income level, and even if there is insurance demand, the high premium makes them look at the ocean and sigh; Because of the high payout ratio and low profit rate of agricultural insurance, insurance companies tend to operate low-profit agricultural insurance, so they are unwilling to operate agricultural insurance. Even if there is, it is limited to a few agricultural production projects with high degree of commercialization or high added value, such as flowers and breeding. From this point of view, this commercial operation mode of agricultural insurance has its limitations in a certain period of time. Mainly in the following two aspects.

(A) the existing model can not alleviate the imbalance between supply and demand of agricultural insurance.

China is a country with many natural disasters, and crop losses caused by floods, droughts, pests and diseases are very serious every year. According to statistics, in 2005, the area affected by crop floods in China was16.38 million mu, with an area of 83.92 million mu and a population of 654.38+50.78 million, and the direct economic loss exceeded102.8 billion yuan [2]. Therefore, farmers urgently need to protect crops, so there is a demand for insurance. However, under the condition of market economy, insurance companies aim at making profits, and the number of insurance products developed is small and the premium is high, which makes the above needs of farmers not satisfied. At this time, the contradiction between supply and demand imbalance was exposed.

(B) the existing model can not protect the interests of farmers and promote agricultural development.

As mentioned earlier, due to the harsh conditions of agricultural insurance, farmers at a natural disadvantage have no resistance to natural disasters and can only rely on the weather to eat. Good year, good harvest and high income. On the contrary, it is difficult to guarantee the income. In this way, the interests of farmers are not guaranteed at all. China is a country with an overwhelming agricultural population. Only by increasing the income of farmers will the income level of the whole country reach a new level. However, the existing agricultural insurance model can not effectively protect the interests of farmers, so it can not guarantee the development of agriculture, and its disadvantages are obvious.

Function and value: the logical basis of establishing the government responsibility mechanism of agricultural insurance

It can be seen that the existing commercial operation mode of agricultural insurance in China does not conform to the characteristics of agricultural insurance itself and has its limitations. Simply relying on the one-to-one insurance agreement between farmers and insurance companies can not achieve the goal of relying on agricultural insurance to ensure agricultural development. Therefore, the author believes that it is necessary to strengthen the supervision function of the government, establish a government responsibility mechanism in the agricultural insurance system, and change the one-to-one model of farmers and insurance companies into a three-dimensional main model of government, farmers and insurance companies, thus promoting the development of agricultural insurance in China. The establishment of government responsibility mechanism highlights the main position of the government in agricultural insurance and has the following functions.

(1) Protecting farmers' interests and invigorating the rural economy.

By adopting a series of preferential policies such as tax relief, financial subsidies and reinsurance, the government can fully mobilize the enthusiasm of farmers and insurance companies, enrich and develop the existing agricultural insurance system, and properly protect crops, thus ensuring that farmers' interests will not suffer too much losses due to natural disasters and farmers' income will be guaranteed. In this way, farmers' enthusiasm for production can be fully mobilized, so that they can put into production with greater enthusiasm, thus invigorating the rural economy.

(2) Develop new types of insurance and improve the insurance market in China.

For a long time, the slow development of agricultural insurance products, single variety, weak development of insurance companies and lack of stamina and vitality in the insurance market have become a major bottleneck restricting China's agricultural development. Therefore, it is necessary to establish a government responsibility mechanism to improve the enthusiasm of farmers and insurance companies to develop new types of insurance and improve the insurance market.

(C) to enhance the international competitiveness of agricultural products in China.

For a long time, China's agricultural harvest has not been broken, the level of agricultural development is low, and the risk-taking ability is weak. Agricultural products have been at a disadvantage in international competition. This situation became more serious after China joined the WTO. Establishing the government responsibility mechanism and perfecting the agricultural insurance system can enhance the anti-risk ability of China's agricultural production process, thus improving the international competitiveness of China's agricultural products.

Legislative Review: The Role of Government in Foreign Agricultural Insurance

Agriculture is a weak industry, and effective measures must be taken to protect it. Agricultural developed countries all adopt agricultural insurance system to protect their agriculture, such as the United States, Japan and France. Comparing the agricultural insurance models of these three countries can be used for reference. Introduce the legislative models of the three countries for reference.

(A) the American model

The agricultural insurance system was first established in the United States in 1938. In the following decades, the United States improved the agricultural insurance system by constantly amending laws, establishing the corresponding government agricultural insurance guarantee system. Generally speaking, agricultural insurance in the United States belongs to the insurance operation mode led by the government. Its operation mode mainly has the following characteristics: (1) complete legislation. The United States has promulgated the Federal Crop Insurance Act and the Federal Agricultural Insurance Reform Act. (2) Established a national specialized insurance institution focusing on policy agricultural insurance. The United States has established a federal crop insurance company to operate crop insurance and subsidize insured farmers. (3) Support by financial means. The American government has taken financial measures such as providing insurance premium subsidies and reducing tax rates, which has improved the enthusiasm of insurance companies, enabled commercial insurance companies to participate in crop insurance, and thus enabled the agricultural insurance market to operate effectively.

(B) the Japanese model

From 65438 to 0947, Japanese agricultural insurance system was established in China. According to the relevant provisions of Japan's Agricultural Disaster Compensation Law, Japan's agricultural insurance adopts the business model of non-governmental mutual aid organizations. The characteristics of this model are: (1) Agricultural insurance combines compulsory insurance with voluntary insurance. That is to say, it is clearly stipulated that food crops (such as rice and wheat) related to the national economy and people's livelihood are subject to compulsory insurance, and other crops are voluntarily insured by farmers. (2) Non-governmental mutual aid organizations operating insurance are not for profit. Non-governmental mutual aid organizations are responsible for local agricultural insurance, and farmers in this area must accept the insurance of insurable crops as long as their planting area reaches the legal minimum insurance standard. (3) Subsidy and reinsurance system. The Japanese government implements a subsidy system for agricultural insurance. Farmers participate in insurance, and the government subsidizes their insurance premiums. At the same time, the government reinsurance non-governmental mutual aid organizations, thus reducing and differentiating the agricultural insurance risks undertaken by mutual aid organizations.

(C) the French model

France established the agricultural insurance system in 1948. It mainly adopts the mode of combining non-governmental mutual assistance with commercial operation. In a word, it is characterized by (1) the combination of compulsory insurance and voluntary insurance. Through legislation, it is clearly stipulated that crops and animals related to the national economy and people's livelihood are subject to compulsory insurance, and other agricultural products are freely insured by farmers, but the government implements a premium subsidy system for insured farmers. (2) Encourage the people to establish policy-based agricultural insurance institutions, and the government will guarantee their operating expenses in the form of financial subsidies. (3) Diversification of agricultural insurance system. In France, the insurance institutions involved in agricultural insurance are: government insurance institutions, joint-stock insurance companies, non-governmental mutual aid organizations, crop insurance groups and so on. To sum up, one of the reasons for the agricultural development in the United States, Japan and France is that there is a successful agricultural insurance system to ensure their agricultural development. Moreover, the agricultural insurance models of the three countries are strikingly similar, that is, they all have complete legislation to regulate agricultural insurance behavior; The government implements preferential financial policies such as premium subsidies and tax exemption. At present, China's agricultural insurance system is still in the stage of exploration, improvement and development. Summarizing the legislative experience of agricultural insurance in other countries has important reference significance for building a complete agricultural insurance system in China.

Reconstruction of legislation: the path choice of realizing mechanism of government responsibility in agricultural insurance

Practice shows that China's existing agricultural insurance system can not effectively prevent agricultural risks. In recent years, with the development of rural social economy, the demand for agricultural insurance has been increasing, and the government has paid more and more attention to the development of agricultural insurance products. Fortunately, China has started a pilot project on how to develop agricultural insurance. For example, the People's Insurance Company of China and China United Property Insurance Company carried out policy insurance pilot projects for dairy cows and rice in Sichuan and Jiangsu respectively [4]. The author thinks that the establishment and perfection of China's agricultural insurance system should be based on China's national conditions and learn from foreign experience. According to the characteristics of agricultural insurance, China should actively explore and develop the agricultural insurance system based on policy insurance.

(1) Improve the existing agricultural insurance legislation and establish a sound agricultural insurance system.

At present, China's Insurance Law cannot completely adjust and standardize agricultural insurance, and there are serious defects in the construction of agricultural insurance system. However, developed agricultural countries have a complete set of agricultural insurance laws and regulations suitable for their own agricultural development, such as the Federal Crop Insurance Law, the Federal Agricultural Insurance Reform Law, the Livestock Insurance Law, the Agricultural Insurance Law and the Agricultural Disaster Compensation Law of Japan. China should learn from the legislative experience of the United States and Japan on agricultural insurance and promulgate the Agricultural Insurance Law as soon as possible, clearly stipulating the rights and obligations, insurance scope, risk sharing methods and loss compensation rules of agricultural insurance subjects, so as to make the subjects clear and the rights and responsibilities clear. Only in this way can the function of agricultural insurance be truly brought into play in the event of risks.

(2) Define the types of agricultural insurance and implement the principle of combining compulsory insurance with voluntary insurance.

Agricultural insurance can be subdivided into crop insurance and aquaculture insurance. China has a vast territory, unique geographical environment and a wide variety of crops. Therefore, when developing agricultural insurance products, it is necessary to adjust measures to local conditions, develop insurance varieties suitable for local areas in different producing areas, and at the same time formulate insurance rates suitable for local economic development level, which cannot be across the board. In each specific production field, insurance companies should combine the development trend of agricultural industrialization, develop comprehensive insurance products that span all aspects of production, processing and sales, and promote the improvement of insurance product structure through the upgrading of agricultural industrial structure [5]. In the specific insurance mode of agricultural insurance, we should adhere to the principle of combining compulsory insurance with voluntary insurance. For example, Japan's agricultural insurance law stipulates that all farmers whose output exceeds the legal minimum standard must participate in insurance, while in other cases, farmers voluntarily decide whether to participate in insurance. China can learn from Japanese experience and implement compulsory insurance for crops (such as rice, wheat and oil crops). ) and livestock (such as cattle, pigs, horses, sheep, etc. These are closely related to the national economy and people's livelihood and the interests of farmers. For other agricultural products outside the regulations, farmers voluntarily choose whether to insure them.

(C) the government to strengthen security functions, the establishment of agricultural insurance subsidies system

Doing a good job in social security is an important function of modern government. Establishing agricultural insurance system is an important measure to improve rural social security system. Agricultural insurance is related to the vital interests of Chinese farmers and the safety of grain production. Therefore, how to improve the enthusiasm of farmers and insurance companies for underwriting is an urgent problem. The author thinks that China should learn from the French experience and implement the agricultural insurance subsidy system. French agricultural insurance implements the policy of low rate and high subsidy. The government subsidizes farmers and also gives financial subsidies to insurance institutions. In view of the actual situation in China, the author believes that the government can give high financial subsidies to farmers who participate in compulsory insurance according to a certain proportion; For the types of insurance voluntarily insured, it is decided whether to grant subsidies according to the situation. For insurance companies, we can give corresponding financial subsidies according to certain standards according to the risk degree of insurance coverage.

(D) The government establishes a reinsurance system to share agricultural insurance risks reasonably.

In order to improve the enthusiasm of insurance companies to develop agricultural insurance, the government can differentiate insurance risks by establishing a reinsurance system in addition to giving subsidies and reducing tax rates. Regarding the construction of reinsurance system, the author thinks that there are two paths: first, the insurance company underwriting agricultural insurance applies for reinsurance from other insurance companies, but it must file with the government insurance supervision department. Once the risk occurs, the insurance company will pay compensation according to the agreed insurance rate, and the government will give certain financial subsidies; Second, the government set up a special agricultural insurance institution, whose function is to handle reinsurance business for insurance companies underwriting agricultural insurance, provide business guidance for insurance companies underwriting agricultural insurance, supervise their insurance activities, and formulate policies related to agricultural insurance.

The author believes that only when the government takes measures to share the risks of agricultural insurance reasonably, so that insurance companies can win, at least not lose money, can their enthusiasm for underwriting be mobilized, and only by strengthening the role of the government in agricultural insurance and establishing a government responsibility mechanism can we improve China's agricultural insurance system.

Agricultural insurance model article 2: problems and innovations of agricultural insurance.

20 1 1 The severe drought at the beginning of the year caused great losses to agriculture in the whole province. Drought-affected area10.77 million hm2,129,500 large livestock have difficulty drinking water due to drought. In the first half of 20 12, all parts of the province suffered from snowstorms, droughts and floods to varying degrees, with an affected area of 299,040 hm2, no harvest/kloc-0.464 million hm2, and 372 houses collapsed, resulting in direct economic loss/kloc-0.66 billion yuan. In all kinds of natural disasters, drought is serious and persistent [2]. In recent years, the proportion of drought-affected area in the total disaster-affected area has been above 50%, reaching 62.66% in 2009.

Development status and existing problems

Development status of 1

Since the opening of policy-based agricultural insurance in 2007, the overall development level of agricultural insurance in Hebei Province has been improved and its coverage has been continuously expanded. In 2009, 6,327,900 households participated in the insurance, covering the whole province 1 1 districts and cities, and 485,600 households benefited from agricultural insurance, and the insurance guarantee function was initially brought into play [1]. According to the statistics in table 1, from 2007 to 20 1 1, both property insurance premium income and agricultural insurance premium income in China showed an upward trend, but the proportion of agricultural insurance premium income in the total property insurance premium income was very small and showed a slight downward trend. As far as Hebei province is concerned, although the agricultural insurance premium income has maintained a steady growth of about 18% since 2008, as a large agricultural province, its agricultural insurance premium income accounts for a low proportion of the national agricultural insurance premium income, and it has always remained at around 4% [2]. In addition, the author calculates the density of agricultural insurance in Hebei according to the income of agricultural insurance premium and the total rural population in Hebei, that is, the average insurance premium paid by each rural population for transferring agricultural risks. According to the data, the per capita premium of rural population in Hebei showed an upward trend in 2007-20 1 1, and the demand for agricultural insurance increased to a certain extent, but the absolute value was too small, 20 165438.

2 existing problems

Insurance supply is insufficient. By the end of 20 1 1, there were 24 property insurance entities in Hebei province, and only 3 insurance companies were engaged in commercial agricultural insurance business. Policy-based agricultural insurance is mainly based on pilot types of insurance, such as dairy cows, fertile sows, corn, wheat and cotton insurance. Low security and wide coverage? Determine the level of protection, such as 300 yuan per mu for wheat; The insured amount of each cow is 5000 yuan. Once affected, farmers can only get basic cost compensation at most, which is not enough to make up for the actual losses. In terms of insurance liability, it mainly bears the losses caused by wind and hail disasters to insured plants; Major diseases, natural disasters and accidents lead to the direct death of the insured, while the ubiquitous drought, pests and diseases are not covered [3].

Insufficient effective demand. Hebei province is a big agricultural province, and the agricultural insurance market has great potential. However, at present, the main reasons for the slow promotion of agricultural insurance are farmers' insufficient purchasing power and poor insurance awareness. From 2007 to 20 10, the average net income of farmers' families in Hebei increased from 4,293.4 yuan to 5,858.0 yuan, with an average Engel coefficient of 33%. Farmers' living standards are still at a low level, and even if they have the willingness to participate in insurance, they lack actual purchasing power [4]. In addition, Chinese farmers' awareness of general risk prevention is weak, their trust in insurance companies is low, and they rely more on government agricultural subsidies and agricultural relief while relying on the weather to eat.

Limited technology and lack of effective business model. There are some limitations in the management technology of agricultural insurance in Hebei Province, such as less types of insurance, small coverage and high claim cost. In 2009, the amount of agricultural insurance insured by Hebei * * * was 65.438+06.5438+98.3 million yuan, the premium income was 557 million yuan, the indemnity expenditure was 399 million yuan, and the loss rate of insured amount was 3.33%, while that of payout ratio was 765.438+0.63%. Hebei Province introduced subsidies related to agricultural insurance, and launched a pilot project of financial subsidies for agricultural insurance premiums in the province. The premium is borne by farmers and 80% by governments at all levels. Local governments have a high proportion of financial subsidies for agricultural insurance [4]. However, the economic strength of Hebei provincial government is not as good as that of developed areas, and many areas are in financial difficulties, so it is difficult to get financial subsidies in place in time, which limits the development of agricultural insurance. Since 2004, all parts of China have begun to actively explore the new agricultural insurance business model and carried out a series of pilot work. However, there is little research on the development of agricultural insurance in Hebei province at present, and an effective and mature development model has not been formed.

Suggestions and innovations

1 explore models and systems suitable for development

The agricultural insurance business in Hebei is mainly based on policy pilots, accounting for more than 90% of the total premium income of agricultural insurance. Agricultural insurance has strong externalities. No matter what kind of operation mode is adopted, the state's financial and policy support is one of the necessary conditions for its smooth development. At present, China's agricultural insurance business model has its own characteristics, which provides a good experience for the development of agricultural insurance in Hebei. For example, Anxin Agricultural Insurance Company, promoted by government financial subsidies, is commercialized in Shanghai? Anxin mode? ; What is the implementation of Anhua Agricultural Insurance Co., Ltd. in Jilin around and relying on leading enterprises in agricultural industrialization? Anwar model? ; French UNITA insurance company was established and implemented in Sichuan? UNITA model? Relying on strong network, capital, rich experience in agricultural insurance and management advantages to occupy the market. According to the economic environment and the development status of agricultural insurance in Hebei Province, the author thinks that the development of agricultural insurance should rely on local governments, establish mutual aid and cooperative insurance organizations in rural grassroots, and establish a multi-level, multi-channel and multi-agent policy agricultural insurance model and system supplemented by commercial insurance.

2. Improve the technical means of operation

Strengthening the development technology of insurance products, opening up product sales channels, strengthening the development of agricultural insurance products and innovating insurance products that meet the needs of rural areas are the basis for the development of insurance market. Coordinate with governments at all levels and financial departments to continuously expand the coverage of existing policy insurance and improve the coverage of existing insurance such as dairy cows, fertile sows, corn, cotton and wheat; In areas where local finance is strong and qualified, the types of financial subsidies should be appropriately increased. Hebei province has a superior geographical environment, which is suitable for planting a variety of crops and cash crops, and has formed many agricultural products with local characteristics. For characteristic cash crops, we should increase the development of insurance types, such as pepper planting and vegetable insurance in plastic greenhouses, so as to promote the development of commercial agricultural insurance [5]. At the same time, explore the innovation of sales channels, strengthen the contact with rural grassroots organizations and cooperatives such as agricultural economic stations and epidemic prevention stations, and increase the publicity of agricultural insurance, so that farmers can truly understand the products and improve the effective demand for agricultural insurance.

Improve the scope of risk protection and explore catastrophe risk management technology. Judging from the disasters in Hebei Province in recent years, drought is the most important natural disaster, and its economic losses can not be ignored. To expand insurance coverage, we must explore effective risk transfer methods. Generally, the insured catastrophe risk can be transferred through reinsurance and insurance risk securitization. Insurance companies will transfer some catastrophe risks to bond investors by issuing bonds whose income is linked to the specified catastrophe losses. Since the first catastrophe bond was issued in 1996, as of 20 1 1, the cumulative issuance of catastrophe bonds has exceeded $37.6 billion. Judging from the risks covered by catastrophe bonds, the United States is dominated by hurricanes, followed by earthquakes, and Europe is dominated by storms [5]. Compared with China, on the one hand, due to the lack of sufficient and detailed disaster data and catastrophe reinsurance products over the years, it is difficult and costly for agricultural insurance insurers to reinsurance; On the other hand, China has not officially started insurance risk securitization, and there are limited ways to transfer catastrophe risk to the capital market. It is imperative to learn from foreign experience, gradually develop agricultural insurance catastrophe bond products suitable for China's national conditions, and use reinsurance to transfer and disperse catastrophe risks to the international insurance market [6].

Improve the efficiency of claims and strengthen the technical innovation of insurance claims. Hebei's economically developed areas are lacking, farmers' overall quality is low, and their understanding and trust in insurance are limited. Therefore, to develop agricultural insurance, we must first establish an agricultural insurance service network, move the insurance service gateway to the front line of agriculture, and pay special attention to claims. Cooperate with rural grass-roots organizations, hire experienced agricultural workers as survey and damage assessment work, go deep into the disaster site, ensure the accuracy of damage assessment, and improve farmers' confidence in the results of claims settlement. Secondly, advanced insurance claims technology is introduced to reduce claims costs and control moral hazard. In recent years, agricultural meteorological index insurance contracts introduced by some countries are the innovation of claims technology. Crop yield is usually closely related to weather conditions, for example, more or less rainfall will lead to changes in crop yield. Agricultural meteorological index insurance is to pay for the decline in production caused by weather variables. Taking the wheat drought index as an example, the drought degree is evaluated by rainfall [6]. Assuming that the insurance liability is within the insurance period and the rainfall is less than 80mm and 40~80mm, each insurance unit will pay 30 yuan/mm; When the rainfall is less than 40mm, the insured amount is 3000 yuan. Assuming that the rainfall during the insurance period is 70mm, the compensation amount of each insurance unit is (80-70)? 30, namely 300 yuan; When the rainfall during the insurance period is 30mm, it is 3000 yuan. Because compensation does not depend on actual losses, moral hazard and adverse selection are easy to control. The information needed for underwriting and claim settlement is simple and easy to obtain, which reduces the operating cost. In addition, the index insurance contract has the characteristics of standardization and transparency and is easy to circulate in the secondary market [6].

3. Carry out business innovation and accelerate the pace of development.

Innovation of price and income insurance. The price fluctuation of agricultural products increases the uncertainty of farmers' income and the difficulty of production decision. Lack of price risk management has become an important reason for some farmers to fall into poverty and an important factor restricting agricultural development [1]. Traditionally, the price of agricultural products is regarded as an insurable risk, because the price fluctuation cannot be scientifically measured by statistical data, and it is difficult to price the risk reasonably. The United States introduced the federal crop insurance products supported by government subsidies on 1996. That is, the insured farmers choose an income insurance project and the proportion of compensation before planting. If the actual income after harvest is less than the product of expected income and payout ratio, the insurance company will be responsible for paying the difference. In the United States, in 2006, among all government-supported insurance projects, the proportion of crop area covered by income insurance increased from 7% before 10 to 57%. 20 10 unita insurance in France has developed a market-oriented income insurance product that supports the risks of natural disasters and price fluctuations [1]. According to the historical output, the futures market price and the historical price of each region, the crop insurance price is determined, and the insurance liability is assumed in combination with the insured land area. No matter the decrease of crop income caused by natural disasters or the fluctuation of prices, you can get insurance compensation.

Innovation of order agricultural insurance. Order-based agriculture means that agricultural products processing enterprises sign order contracts with farmers before delivery, farmers organize production according to the contract requirements, complete product sales before delivery, and guide farmers to arrange production according to market demand, which can reduce the blindness of production and stabilize farmers' income. However, in practice, due to natural disasters, market price fluctuations, financing difficulties of agricultural enterprises and other factors, the current performance rate of contracted agriculture in China is low. If the insurance mechanism is introduced in this process and the advantages of insurance companies in underwriting crop insurance and property insurance of agricultural products processing enterprises are utilized, the performance of both parties can be guaranteed. On March 8, 20 12, the opinions of the State Council on supporting the development of leading enterprises in agricultural industrialization issued by the state pointed out that it is necessary to vigorously develop the innovation of credit insurance products and services based on contract agriculture; Encourage leading enterprises to subsidize order farmers to participate in agricultural insurance; Encourage the use of export credit insurance to provide risk protection for agricultural products export [6].

abstract

The development of agricultural insurance in Hebei needs the government to formulate an incentive mechanism, guide relevant institutions to actively participate in it, introduce domestic and foreign agricultural insurance development experience, innovate according to the natural environment and agricultural production characteristics of Hebei Province, and focus on developing agricultural insurance types that meet the needs of Hebei Province to ensure the healthy and sustainable development of Hebei's agricultural economy.

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