Policy Research On Agricultural Insurance In China’s Coastal Areas

Around the world, known as a“fragile”industry, agriculture greatly depends on natural conditions and has a poor ability of coping with problems. As a system that transfer risk、disperse loss and especially as an international practice that provide appropriate protection to agriculture , agricultural insurance and subsidies are not only an important part of agricultural protection system,but also one of the important parts of international non-price agricultural protection tools.Due to the special location and weather features in coastal areas of China, Drought, water logging, lightning, frost, hail, typhoon and other disastrous weather have brought adverse influence on industrial and agricultural production. The direct economic losses every year in agriculture and rural economy caused by disasters cost up to several hundreds to thousands billions money, this situation actually makes agricultural insurance in pressing needs. In recently years, the economic development is quite rapid in coastal areas of China which provides the conditions and timing that industry nurturing agriculture and agricultural insurance key indicators place in the front rank of our country, all of these objectively provide favorable conditions to the further development of agricultural insurance.Compared to the development of the total economic development in coastal areas and the development of insurance in China, the scale of the development of agricultural insurance in coastal areas is petty and the coverage of insurance is not wide enough. In spite of there are various patterns of agricultural insurance have been explored, most of them are in primary stage, the insurance function and role need to be improved. As Quasi-public goods, agricultural insurance have obvious social benefits, but general commercial insurance companies would not run agricultural insurance because of the high claim ratio in agricultural insurance under conditions of market economy. Then the favorable support of government policy becomes the key of the effectively development of agricultural insurance.On this basis, there are important values and meanings whether theoretical or in practice o strengthen the topics on agricultural insurance policy of coastal areas of China, explore agricultural insurance policy system which in accordance with agriculture of coastal areas and laws of market economy, lead the perfect of agricultural insurance policy system and give promotion and popularization to other areas when conditions and time are ripe.This thesis strictly follows the paradigm of modern economics research, using the method of uniting history and logic, the combination of normative and positive, the basic pattern of integrating qualitative analysis with quantitative analysis, the comprehensive use of New Classical economics, Regional Economics, Development Economics, Agricultural Economics, Agricultural Policy, Rural Finance, Econometrics and other analysis tools, begins with a system elaboration of insurance theory and analysis of agricultural insurance policy which basing on the explanation of the range divide of coastal areas and the range definition of this thesis. Then it brings the basic framework of agricultural insurance policy of coastal areas, emphasizing on giving an empirical analysis on agricultural insurance policy (including the main crops and important aquaculture) of coastal areas, discussing the economics effects and remaining defects, abundantly mirroring beneficial experience and revelation of typical foreign countries’agricultural insurance policies. Above all, this thesis gives the improving and perfecting plan and strategy to agricultural insurance policies of coastal areas and brings the five safeguards to the effectively implementation of agricultural insurance policies of coastal areas which includes: laws, system, organization, funds and risks. Finally, taking Shandong Province as a typical example, this thesis gives an empirical and economics analysis on agricultural insurance policies of coastal areas and brings out the crucial conclusion and future research forecast in this thesis.Firstly, this thesis carries out a very thorough monographic study on agricultural insurance policy of coastal areas of China. Great research results of agricultural insurance have been gained at home and abroad, which adopted by policymakers have produced relatively good economic and social effect, making significant contributions to the healthy development of agricultural insurance. According to the documentary analysis, there are not enough researches aiming at agricultural insurance policy of coastal areas of China, lacking in depth and level, especially in the area with economics research methodology, which this paper is going to tentatively explore.Secondly, it carries out an empirical analysis on the economic effects of agricultural insurance policies of coastal areas by using econometric model. About the choices of effecting factors, the thesis especially pay more attention to the policy factors that affect agricultural product and incomes of farmers. Measuring results show that the investment on agricultural insurance and policy support has clear positive effects on the development of coastal areas’agriculture. Further, together with actual case, there is test and verification on the economic effects of agricultural insurance policies of coastal areas.Thirdly, there is a total analysis on the insurance policies of the main crops and important aquaculture and its operating characteristics, especially gives a focus on insurance of fishery, fishing vessel, fisherman and aquaculture which carry distinctive coastal features. Due to the special geographical location and climate, crop production, livestock, fisheries aquaculture of coastal areas show distinctive features to other areas, the relatively agricultural insurance policy also has distinctive features. This thesis systematically sorts out and elaborates these characteristics and rules to provide proper decision-making basis to formulate insurance policies which according with the features of coastal areas.Fourthly, this thesis brings out the basic frame of agricultural insurance of coastal areas of China and clears the protection system of the practice of agricultural insurance policy of coastal areas of China. The analysis frame and protection system of agricultural insurance doesn’t make sure the efficient connection and implementation of agricultural insurance policy’s all items. This thesis takes the construction of risk-sharing mechanisms, market operation mechanism, benefit-sharing mechanisms and Interrelated mechanisms to further integrate and optimize agricultural insurance policy of coastal areas, and eventually reach the goal of agricultural insurance truly escorting the development of rural areas t and the prosperity of farmers.