| Modern insurance has three functions, namely, economic security, financing and social management, and economic security is the basic function of the insurance which is determined by insurance’s essential characteristics. The functions are reflected in three aspects of risk diversification, financial compensation and promote social stability. The social management is emerged when the insurance industry was developed and affected by many aspects of social life, such as social security and social risk management.Agricultural insurance as a mechanism for economic security and risk diversification is an important part of social security system in the international arena. The management of agricultural insurance business is a worldwide problem and China faces great challenges for a long time as our special national conditions and the system, the serious agricultural disasters, economic backwardness in rural areas and low level of agricultural modernization. Due to the lack of agricultural risk spreading mechanism and lack of government investment, China agricultural insurance is gradually shrinking and the insurance function is not fully reflected. On June15,2006, the State Council promulgated the "A number of observations of State Council on insurance reform and development"(referred to as the State50), put forward specific demands on the development of policy agricultural insurance. The essence of policy agricultural insurance is the financial subsidies for agricultural production sector from government and it is a manifestation of the industry to support agriculture which is closely linked with the process of industrialization of a country or region. At present, China has entered the initial stage of the industry to support agriculture and the test of policy agricultural insurance was carried out in the country in2007. The important objective for running policy agricultural insurance is to maintain food security in the population with limited arable land resources and so it is the best interpretation that the first policy agricultural insurance test was selected in mid-west grain production province. These policies promoted the development of agricultural insurance but the overall situation is not ideal and the insurance protection function and risk diversification mechanism is not fully reflected. The current policy agricultural insurance in China existed a series of important issues such as low level of financial subsidy, risk prevention and the departure of demand and supply, all of which would restrict agricultural insurance risk protection as the shortage of overall financial strength of the national or local government.This study, starting from the stakeholder theory based upon agricultural insurance system and in-depth analysis of the interests of all parties, try to find the orientation of interest and contradictions wherein and to explore the road of development suitable for the risk characteristics of agricultural insurance and rural social system.The theoretical study of the domestic and international stakeholders mainly focuses on corporate governance, ownership structure and internal control from the management perspective, the key of this study is to explore the configuration of ownership, shared ownership and the advantages of common governance of stakeholder. This study provides a theoretical foundation for stakeholder’s participation in governance mechanisms as a high level of stakeholder governance contributes the profitability of the enterprise. Therefore, stakeholder researchers tend to attach importance to the authority of stakeholders in the enterprise and to encourage the stakeholder participation in corporate governance and regulatory management of internal control.The study of stakeholder theory from domestic and foreign scholars is quite rich, but very little theory is applied to insurance, especially the field of agricultural insurance. Stakeholders in the agricultural insurance can be identified from three aspects:First, the provider of daily operation for the agricultural insurance, such as government (including central and local government), insurance companies, its officers and employees; social entities whose behavior can directly affect the management of agricultural insurance, such as farmers, relief from the government sector, insurance association and the meteorological department etc.The chapter III studies the stakeholders and their interest demands and classifies the stakeholders from three dimensions for legitimacy, influence and urgency, finally concludes that the stakeholders in the agricultural insurance can be divided into three categories:core stakeholders, strategic stakeholders and potential stakeholders. The core stakeholders, including three interest groups of government, insurance companies and farmers; the demands of the government to fulfill its responsibilities to maintain social stability, to promote rural economic development and raise the level of social welfare; the demands of insurance companies, compared with the pursuit of profit maximization at the same time to fulfill their social responsibilities; the demands of farmers is to obtain the risks prevention service by the government or other agencies and to get the compensation or government relief when suffered disaster or accidents. The chapter IV analyses the conflict of interest and the game among the core stakeholders. This study found that agricultural insurance stakeholders both independent and influence each other as various interest groups have different interests and demands and behavioral characteristics, and thus triggered a conflict of interest among them.The chapter V firstly researches and analyses of insurable risks and changes in the conditions of the insurable risk and the risk characteristics of the agricultural insurance, followed the example of Guangdong’s agricultural risks and agricultural insurance. According to the course of development of the agricultural Insurance, this part analyses agricultural risk insurability from insurers’profit-maximizing perspective and considers that the risk insurability depend upon the mechanism of agricultural reinsurance and catastrophe risk, the government should conduct agricultural premium subsidies, reduction of the related taxes and provide management subsidies as well.The chapter VI summed up the practice of agricultural insurance development at home and abroad and proved essential for the development of agricultural insurance with its system or mode of development, but so far, not any one development model is the most successful or apply worldwide generally. The reason is simple as there were wide differences in the level of economic development, social and cultural environment and agricultural risk characteristics in different countries or regions. This study proposes to build a new agricultural insurance model-stakeholders-oriented model and in this model core stakeholders should participate in the agricultural insurance business by coordinating the relationship among the various stakeholders and take appropriate action to achieve sustainable agricultural insurance system arrangement.The chapter VII analyses the actual situation of the level of economic development and farmers income level of the geographical differences and in-depth study of agricultural insurance subsidy model deficiencies and adverse effects on farmers’ income distribution and a comprehensive comparison of existing the pros and cons of the various financial subsidies from the perspective of maintaining fiscal equity. Meanwhile the chapter analyses comparison of existing the pros and cons of the various financial subsidies comprehensively and proposed a new mechanism for sharing financial subsidies according to the level of economic development and financial strength of all levels of government and the establishment of the Central finance and local combining all levels of financial and multi-level agricultural insurance financial subsidy system.Under the background of declining in the current arable land, abandoned widespread frequent occurrence of natural disasters, it has important practical significance for the protection of national long-term food security and social stability depend upon our actual situation and the use of stakeholder theory and designation of scientific policy agricultural insurance financial subsidy system. To carry out this study has important theoretical and practical value, especially for promoting agricultural development and construction of a new rural, increasing farmers’ income and finally solving the "three rural" issues. |
PDF Full Text Request