Research On Agricultural Credit Guarantee Insurance

As a large developing country, rural economy has always been an important component of national economy in our country. The development of agriculture is vital for the whole national economy. In the process of rural economy’s development, there is a big financing gap of agricultural production input. It’s hard for farmers to apply for a loan, which has restricted the development of rural economy and limited the progress of our society new rural construction. In order to promote rural economic development, the key is to solve the problems that the farmers has difficulty to apply for a loan, increase agricultural production input and release rural financial markets. Given the nature of agricultural production which is easily affected by the natural risks and other market risks, and that farmers have no enough pledge for the loan which results to the insufficiency of effective supply of loan from the financial institution, to promote agricultural credit guarantee insurance, using surety insurance to provide credit guaranty for the loan farmers, relieving the difficulty for the farmers to apply for a loan, based on the experience both at home and abroad. Agricultural credit guarantee insurance eases the bottleneck problem which restricts the farmers’ financing effectively,improving the credit of the farmers, increasing the qualification of the farmers to enter into the credit market, and providing a new way to solve the farmers’ problems of financing difficulty.Based on Anhui Guoyuan Agricultural Insurance Inc.’s practice in Lujiang County, Anhui and its advantages and disadvantages in the experiment, this thesis mainly analyzes the key elements that restrict the development of agricultural microcredit guarantee insurance in our country, and also provides practical suggestions and measures for implementation of this in our country to establish a long-term cooperative mechanism for sharing both risks and benefits by reference to experiments of agricultural microcredit guarantee insurance and innovation in rural financing abroad. There are five parts in this thesis. The first part is introduction of relative survey background and importance, the second introduction of agricultural microcredit guarantee insurance practice in Lujiang County, the third advantages and disadvantages in this practice and reasons, the fourth relative experiments abroad and comparison between domestic and abroad practices, and the fifth implementation suggestions and measures.On the basis of Anhui Guoyuan Agricultural Insurance Inc.’s practice, the thesis adopts case study and empirical analysis to investigate how to implement agricultural microcredit guarantee insurance in our country and provide suggestions for reinforcing the mutual cooperation between insurance company and commercial bank in the promotion of the policy.The thesis’ s investigation of agricultural microcredit guarantee insurance has, to some extent, application value on developing agricultural microcredit guarantee insurance to solve farmers’ loan difficulty in our country, and is also useful for domestic insurance companies to promote agricultural microcredit guarantee insurance.