Fujian Pilot Policy-oriented Agricultural Insurance Discussed The Current Situation And Problems

Fujian is situated on the southeast coast, it is a province which natural disasters such as typhoons, floods, landslides and so on happen frequently, all kinds of these unexpected natural disasters often cause huge economics losses, besides, the uncertainty of unnatural risk such as market risk, social risk and so on has also greatly affect the security and stability of agricultural production. Many famers "immediately return to poverty by one disaster" or" difficult to turn over for 3 years just by one year's disaster".As a risk transfer and response mechanisms, agricultural insurance play an important role in decentralizing agricultural risk, compensating agricultural losses, improving overall agricultural production capacity and increasing farmer's income. On August 2006, Fujian provincial government issued "Notice to carry out the pilot work of agricultural insurance", considering serving the "three rural"as its purpose, and government-ledding, financial supportting ,market operating and voluntary participating as its policy, taking the way of "pilot first, then promotion", start the pilot work of agricultural insurance officially.As one of the three agricultural insurance pilot provinces of national agricultural insurance system, Fujian firstly launch rural housing insurance, liability insurance for fishermen, fishing boat insurance, rice cultivation, forest fire insurance and other policy-oriented agricultural insurance.For four years' pilot, Fujian policy agricultural insurance has achieved significant results, the insurance coverage continued to expand, the pilot type of insurance and insurance responsibility continued to increase, the scale of risk reserve continued to expand, the disaster compensation level continued to increase.This paper launched around the following five parts:The first part is the review of domestic and foreign policy agricultural insurance theory, the foreign research includes agricultural insurance's government subsides, market failure, market needs and welfare economics analysis, the domestic research includes agricultural insurance's system study, case studies, empirical research and other research such as technology research, economics research and so on.The second part is development models summary and experience reference of domestic and foreign policy agricultural insurance, in abroad, the government-led model in United States and Canada, the public and subsidized model in Western Europe, the social interaction patterns under government support in Japanese and foster selective focus model in Asian developing countries (not including China) were selected to summarize and reference, in domestic, typical models such as Shanghai Anxin model, Jilin Anhua model, Sunshine Mutual model of Heilongjiang Reclamation and Zhejiang co-insurance model were selected to study comparatively and review briefly. The third part is current situation analysis of Fujian policy agricultural insurance, including the necessity of Fujian policy agricultural insurance development, the development process of Fujian policy agricultural insurance, the main products of Fujian policy agricultural insurance, the experimental results of Fujian policy agricultural insurance and the Constraints of Fujian policy agricultural insurance.On this basis,the factors that affect Fujian policy agricultural insurance's development were analyzed, firstly, the domestic and international empirical research on agricultural insurance was reviewed, then the correlation analysis of Fujian policy agricultural insurance's factors was moved on. The results showed that: Fujian policy agricultural insurance premium income has a significant correlation with rural per capita net income, the proportion of the Disaster area accounted for the affected area is relatively small, the loss ratio of agricultural insurance per year has little impact on agricultural insurance premium income, the subsidies policy to strengthen and benefit farmers have promoted the agriculture and the rapid development of agricultural insurance.To sum up, during the factors that affect Fujian policy agricultural insurance's development, agricultural GDP and rural per capita net income are the most two significant factors, and the development of agricultural GDP is reflected mainly on rural incomes, thus the most urgent work about Fujian policy agricultural insurance's development is to improve the income of farmers by various channels.That is the fourth part of this paper.The fifth part is to propose ways and countermeasures aim to promote the the healthy development of policy agricultural insurance on basics of summarizing the development experience home and abroad and Fujian pilot practice,includes speeding up the legislation process of agricultural insurance and complete policy agricultural insurance's Legal system, establishing specialized agricultural insurance organizations, improving the financial support mechanisms of finance and taxation, sounding the distributed and transfer mechanisms of agricultural catastrophe risk, spreading agricultural risks with multi-channels and raising the incomes of farmers, enhance the awareness of the insured farmers, strengthening the training of agricultural insurance personnels.