Study On Development Model Selection And Measures For Agricultural Insurance In Shaanxi Province

As the fundamental industry for national economy, the agricultural industry is of great significance to sound and stable development of China's economy and society. The present agricultural insurance in Shaanxi Province is behind the requirement of rural economic development and farmers. The agricultural insurance model operated by commercial insurance company results in sluggish supply and demand, and market failure and inefficiency as well. The question asked in this paper is how to deal with the problems in agricultural insurance and what policy suggestions should be provided for model selection and promotion for agricultural insurance in Shaanxi Province .Based on related theories in public economics, this paper begins with the analysis on the quasi-public product nature and utility externality of agricultural insurance, focuses on the cause of market failure in agricultural insurance and the difficulties faced by agricultural insurance industry in China, and proposes the basic principles and policy framework for the introduction of policy agricultural insurance. After the comparison between operational models of agricultural insurance in advanced countries, this paper reaches the conclusion that as the policy tool for the government to support the agricultural industry, the agricultural insurance should be policy-oriented and the government should play a key role in building a policy agricultural insurance. The practical operational model of agricultural insurance in Shaanxi Province is to establish a policy agricultural insurance company, with its specific business fulfilled by non-profit agricultural insurance cooperative organization and commercial insurance companies, and the government subsidies agricultural insurance to realize equality and maximize social utility.