Study On Weather Index Insurance For Agriculture

Agricultural insurance is an important means of agriculture risk management and one of the three pillars of development in modern agriculture. In practice, agricultural insurance plays roles in promoting agricultural industrialization process, guiding agricultural structure adjustment, promoting the popularization and application of new agricultural technology and improving the credit status of agricultural business entites. Due to the own unique regional, seasonal, cyclical and other characteristics of agricultural production,agricultural insurance faces management challenges and technical barriers in development process. Since the emergence of agriculture weather index insurance,it caused widespread concern of all parties and is uesd to manage agricultural natural risks under the impetus of the World Bank because of low moral hazard,inhibition of adverse selection, low management cost and easy implementation of the reinsurance, etc.Based on the inspection of a large number of related literature, visiting experts and field research, agricultural risks theory as a guide, using causal analysis, system analysis, comparative analysis, quantitative analysis m ethods, especially from the basic concepts of agricultural weather index insurance , the background, existing practices in developing countries, the domestic primary practice, case studies and policy recommendations, etc., this article discussse agricultural weather index insurance deeply and systematically.The understanding of management challenges and technical barriers in the development of agricultural insurance is the premise of this paper. Based on the literature review and expert visits and the characteristics of agricultural insurance, this article analyzes in general systems and summary the management difficulties and technical obstacles faced by agricultural insurance. The results show that: Owing to its own life, regional, seasonal, dispersion, cyclical characteristics ,agricultural insurance faces management challenges including moral hazard and adverse selection and encounteres technical problems such as premium rate is difficult to determine, he amount of insurance is difficult to determine, post-disaster damage assessment is hard to assess and claims work is difficult.The system knowledge of basic concepts and operation mechanism of agriculture weather index insurance is the basis of this study. Based on the analysis results of previous studies and basic concepts of agriculture weather index insurance as a starting point, this article systematically analyzes the advantages and disadvantages, product design steps and the background of agricultural weather index insurance, further verify the advantages of agricultural weather index insurance in agricultural production risk management and layes the theoretical basis of agricultural weather index insurance.The practice of agricultural weather index insurance in the domestic and international is the key of this study. Based on standardized, specific, social research and analysis of agricultural weather index insurance, This paper formes a few conclusions: (1) In the light of the measures taken and difficulties faced by agricultural weather index insurance in Mexico, India, Malawi and Ethiopia, the implement of agricultural weather index insurance in China still need to improve the basic conditions; (2) Case analysis shows that: the cognitive of weather index insurance for rice is still shallow, the awareness to buy is weak, access to information and the purchase of it is single; (3)Bringing weather index insurance for rice into agricultural insurance policy as soon as possible, improving product design, diversifying distribution channels and strengthening related education and training is the useful ways to related to develop and promote weather index insurance for rice; (4) Policy recommendations to pilot and promote in large-scale of agricultural weather index insurance including: Bring agricultural weather index insurance into the scope of agricultural insurance policies;Improve the product design-related links of agricultural weather index insurance; Construct silver-based products and direct sales channel model; Explore protection of intellectual property rights of agricultural weather index insurance; Strengthen the building of professional personnel associated; (5) According to the key climatic factors affecting the growth of major crop in a specific region, to identify weather index is the key of product design of agricultural weather index insurance .