Study On Product Design Of Agricultural Weather Index Insurance

Agricultural insurance is an important guarantee for the healthy development of modernagriculture, but also worldwide extensive research and application of risk transfer instruments.From the domestic and international practice, the traditional agricultural insurance businessthere are four problems, namely, how to spread catastrophic risk to ensure that agriculturalinsurance continuing operations, moral hazard and adverse selection is difficult to prevention,agricultural insurance rates determined in the technical and application difficulties, theinsurance company the high cost of agricultural insurance. These problems in the traditionalagricultural insurance business and long-term existence of agricultural insurance hightransaction costs. To promote the development of agricultural insurance, people began toexplore the application of agro-meteorological index insurance. Agricultural weather indexinsurance since the emergence of, because it can reduce moral hazard, suppression of adverseselection, management of low-cost, easy to implement the advantages of re-insurance hasaroused the universal concern of all parties. The practice of developed and developingcountries show that index insurance in reducing the cost of insurance transactions level wassignificantly superior to the traditional agricultural insurance has become the new trend ofdevelopment of agricultural insurance in China should also actively test of index insurancecontracts and timely to gradually extend.By the analog method of analysis and normative analysis, the level of transaction costsby comparing the traditional agricultural insurance and agriculture weather index insurance,investigate the transaction cost advantage of the weather index insurance, as the basis foragro-meteorological analysis and research, summarized in other countries design andapplication of index insurance products, combined with the pilot region specific crop yieldsand weather conditions, targeted design reasonable science of weather index insuranceproducts. This study will focus on crop physiological characteristics as the starting point, witha more scientific method to analyze the degree of correlation between the crop water demandand water shortage in the amount of actual losses, combined with non-parametric yieldvolatility model constructed Drought Index compensation model.Domestic and international agricultural weather index insurance in-depth study on thebasis of the design and application, obtained the following basic conclusions:(1) Internationalindex insurance into10years of theoretical exploration and practice of our country in recentyears, pilot exploration showed that the agriculture weather index insurance model is moresuitable for China’s national conditions, at least can be predicted that the development and promotion potential.(2) Technological innovation will reduce the cost of agriculture weatherindex insurance products, provides the possibility for the promotion of weather indexinsurance. Related innovations include improvements in weather monitoring technology, andthe weather elements as a driving factor in the improvement of crop yield forecastingtechniques.(3) By the introduction of disaster risk intensity index is more scientificallyestablished rainfall Payout index model more operational, while the risk of correction of thenet premium also makes large-scale promotion of insurance products.