Research On Forestry Insurance Market Mechanism In Process Of Reform On Collective Forest Tenure

With the further development of forest right system reform，forestry management beginsto be managed decentralizly. This mode of operation not only liberates the rural productiveforces but also increases the risk of farmers operating forestry greatly. Forestry is a weakindustry and is easily affected by environmental factors, such as complex and changeableweather. Forestry insurance industry is an effective means that can be used to solve thisproblem.It plays a important role in guiding farmers to involve in forestry insurance andimproving the quality of forest products. Developing forestry insurance industry can help tospread the risk of farmers’production.From the experience of foreign forestry development of the insurance industry,Insurance industry not only increases farmers’ revenue but also help protect and beautify theecological environment. Therefore, under the existing conditions of building a harmonioussociety in China calling on humans and nature to live in harmony, it becomes more importantto develop forestry insurance industry and forestry insurance market.This paper mainly reviews the state of development of forestry insurance industry inChina in the20years and the basic cause of that undeveloped state. Owing to the nature ofquasi-public product for forestry insurance,which is likely to cause market failure，it cannot rely solely on the market economy mechanism to stimulate the development of forestryinsurance industry.It needs government’ strong support so that government can put forwardthe policy further in promoting the development of forestry insurance industry. The maininnovation of this paper is to predict the trends of the supply and demand insurance industryaccording to changes policy in recent years in China and call for forestry suppliers anddemand of the insurance industry to enter this industry under the guidance of theGovernment.In recent years,under the background of the reform of collective forest right system,it has some progress in collective forest forestry insurance industry in parts of the Southern.After forest growers gain their certificate of forest rights, their enthusiasm are improved inforestry production, and they begin to to engage in forestry seriously. It reveal the trend of further development in forestry insurance industry.Therefore, this text selects one of themost representative of collective forest region in Southern (Fujian Province) and researchthe state of development about forestry insurance in recent years.At the end of this text,someconcrete policy recommendations are proposed about forestry insurance.This article is divided into seven chapters, as follows:The first chapter, it gives an outline of the background,the research purpose andsignificance,the ideas and methods in this article. And then researches work at home andabroad on forestry insurance market dynamic and discourse mainly.It also concludes thepotential of innovation in this article.Chapter II describes the reform of collective forest rights,the latest developmentsand some problems in this process.Chapter III describes the theoretical basis of forestry insurance and conception about theforestry insurance market on the basics of theory.Chapter IV, reviews the current development of the forestry insurance market, sumsup the problems of forestry insurance market, arriving at that there are some significance inforestry insurance market demand and supply,and forestry insurance market doesn’t reachits d degree of development which it should be. At the same time,the chapter also points outthat there are moral hazard and adverse selection problems for forestry insurance market,andpropose appropriate preventive measures.Chapter V, based on two fundamentals of the insurance market in forestry, that is,forestry insurance market supply and demand, it analyzes the demand-supply curve offorestry insurance market, focuses upon an analysis of the contradiction between supply anddemand focusing and the solution.Chapter VI is about the Game Analysis of policy of forestry insurance and theconstruction of and the mechanism of sources of funds in insurance under the conditions ofgovernment involvement in insurance subsidies.Chapter VII, through reviewing the development of the reform of collective forestrights and the forestry market,it directs the problems of forestry insurance market and givessome recommendations or improved countermeasures for the development of the forestryinsurance market from the the point of forester, the government and the forestry insurancecompanies, combined with demand supply analysis and game analysis.