Research On The Policy-Related Rural House Insurance Of Zhejiang Province

As a novel insurance, the policy-related rural house insurance is launched by the government who subsides the insurance applicants by its fiscal income and operated by the insurance companies. The insurance takes the rural houses as its insurance objects. With the help of this novel policy-related insurance, the insured peasants are able to rebuild their house and resume the usual life after the disaster as soon as possible.A spot research pointed at this novel insurance was conducted by the relevant departments of Zhejiang province in August 2006. Then the authority commenced some institutional design based on the research outcome. Consequently, the policy-related rural house insurance carried out province-wide in December.Nevertheless, insurance has its own shortages, either the policy formulation or the actual operation which was revealed in the past three years. The defects in the policy formulation include the insufficient differences between districts, deficiency in the elasticity of the premium and rate, neglect of the extreme risk and the shortage in the prevent mechanism while the insufficiencies in the operation are the moral hazard and the adverse selection, both of which make a block for the policy-related rural house insurance to play an effective role in safeguarding for the suffered peasants. Hence, relied on the relevant theory and method, exploring the road to improve the policy-related rural house insurance of Zhejiang Province has its practical necessity.Accordingly, the paper analyses the practical needs for the policy-related rural house insurance and studies the relevant theory at home and abroad. Then, the research shifts its concentration to policy-related rural house insurance of Zhejiang Province. It conducts a comprehensive elaboration and conclusion for the insurance's current situation, features, operative performance. On the basis of these, the paper decomposes the flaws of the policy-related rural house insurance of Zhejiang Province, and then gives certain policy advices for the payment of the catastrophe risks and prevention of the moral hazard. Besides, according to different criterions, the paper puts forward eight proposals for the improvement of the payment scheme. By comparison and analysis, the paper aims at searching for the optimal payment scheme.The paper made a all-sided discussion about the policy-related rural house insurance of Zhejiang province,espacially the payment scheme of the policy-related rural house insurance.In the discussion, the paper proposals eight indicators to evaluate the schemes for the first time and discusses the behavior of the government, policy holder and the insurer.The method used here is original.At the end, the conclusion is made under the consideration of the current situation and the above analysis.