Design Of Wheat And Corn Drought Index Insurance In Shandong Province

In a variety of meteorological disasters, droughts occurred with widest range, highest frequency, and the most serious. Shandong Province as a major agricultural province in China, as well as an important food crop production areas, extensive planting of wheat and corn. Due to the unique geographical location, drought disaster as the most important agricultural natural disasters in Shandong Province seriously restricts Shandong wheat and corn production. Weather index insurance as a new agricultural insurance product, based on the objective meteorological data to determine rates and damages, makes the claims be more efficient and lower cost. Therefore, the effective drought risk assessment and crop weather index insurance research has an important significance to the Shandong rural economic development and the agricultural insurance promotion in China.On the basis of disaster risk system theory, by statistical analysis of meteorological data, crop yield and growth period, the research carries out a comprehensive assessment of the risk of drought in Shandong Province. Then, the paper establishes the wheat and corn drought index which combines the precipitation anomaly percentage with the growth characteristics and designs wheat and corn drought index insurance in Shandong Province, which solves the problems in the traditional agricultural insurance and provides a reference for the research and development of policy agricultural insurance. Research results are as follows:1. Based on the theory of natural hazard assessment, the paper build drought risk assessment models from the drought hazard sexual, Order of the affected body exposure, four aspects of disaster damage sensitivity as well as disaster prevention and mitigation capabilities and uses GIS technology to assess the risk of drought in Shandong Province, draws a drought disaster risk zoning map. The zoning results are:low-risk areas of Shandong drought disasters are in southeastern region and Shandong Peninsula; moderate risk areas are the central region and the north region; high risk area is located in the northwest of Shandong Province.2. On the basis of the precipitation anomaly percentage, combined with the crops’biological characteristics and moisture sensitivity of different developmental stages, the paper build the drought index of wheat and corn in Shandong Province respectively, Shandong Province, which can have a better description to the wheat and corn drought conditions in Shandong.3. The analysis of wheat and corn drought index with crops’ production rate showed both the wheat drought index and corn drought index have a positive linear relationship with their yield reduction rate. When the drought index is lower, the yield reduction rate is greater.4. Based on the regression equation of wheat and corn drought index with production rates, the research uses the information diffusion method to determine the drought index insurance pure premium rate of wheat and corn in Shandong Province. The results showed that the two crops’ insurance pure rates have a decreasing trend from the northwest to the southeast. The wheat drought index insurance pure rate is higher than the corn drought index insurance pure rate.5. Using the Shandong’ drought disaster risk assessment results to revise the index insurance pure rate and calculate the gross rate and comprehensive premiums, the results showed municipalities premiums overall still showing a decreasing trend from west to east, but the premiums high value area expanded north-central region to the Southwest and the differences between the rates in the region are more obvious, which are more consistent with the actual production situation.6. The research made recommendations for the promotion of wheat and corn drought index insurance in Shandong Province from the two aspects of government support and the drought index insurance reinsurance.