The Research On Weather-indexed Insurance Of Agricultural Products In China

In recent years, global climate are changeable and extreme weather events happen frequently, all of these have great influence in agricultural planting.China, as an agricultural country in the world, the agricultural production activities are susceptible to the influence of extreme natural disasters. Therefore,Weather Risk Management Association which located in Washington D.C points out that people can get insurance and financial services by the means of Risk Management, to transfer or reduce the Weather Risk. Therefore, through the research of production risk and the weather-indexed insurance, it can be used to supplement the policy-oriented agricultural insurance management means and preferably promote our country agricultural insurance product innovation; besides,it can be more conducive to measure the effect of weather risk to production accurately and timely in stabilizing the farmers’ income and resume production after a disaster.This article based on Pricing theory of production weather-indexed insurance, analyzing its development situation and some problems exist. Takeing citrus in Hunan Province as an example, using citrus production and meteorological data from 1986 to 2013 of 14 city states in Hunan Province, through HP filter method and SPSS hierarchical clustering method, determined 14 city states different premium rate. Otherwise, Poposed design ideas of citrus weather index insurance contract,equally, taking Yiyang City as an example to simulate compensation. Finally, Putting forward four suggestions on the pilot research and development, financial support and promotion, the construction of meteorological facilities.In this paper, main conclusions are concluded as follows:Weather-indexed insurance actuarial pricing method has better adaptability and its pricing theory is relatively more mature in the pure insurance rate setting; Domestic weather-indexed insurance faced with insufficient effective demand, lack of professional talents, fuzzy product positioning, incomplete meteorological infrastructure and conservative pricing method in the pilot run process; Hunan citrus production risks triggering threshold general is given priority to the moderate freezing injury and mild drought; Citrus insurance rate are higher in the central, northern and southern take second place; Citrus weather-indexed insurance can be used as a beneficial supplement of the agricultural insurance.The innovation points of this article proposed as follows:(1) based on weather risk, to explore a kind of innovative agricultural insurance as measures of the prevention and transferring citrus frozen and drought disaster, which subject has certain new idea; (2) a systematic and comprehensive combing and introduction of domestic and abroad pilot projects, analysis the problems and reasons, provide a theoretical basis of authority for weather index insurance product design in Hunan Province. (3) combined with the main influencing risk factors of citrus production in Hunan Province, design frozen and drought index, then put them into the premium rating and contract designing, which is relevant to actual situation, and filling in the blank studies in Hunan Province.