Analysis On The Predicament And Outlet Of Agricultural Insurance In China

Agricultural production is the cornerstone of economic development, the sustainable development of the economy directly affects the stability of the whole society. Since the 30-40s of the 20th century, the agricultural insurance has been established, through the 1950s the rise of the closed period, in the 1980s the reinstitution of the rapid development period of 10 years of the period in the 1990s, atrophic depression stage and in the 21st century. Now it becomes important financial measures of agricultural economic security.Since 2003, "the decision to improve the socialist market economic system," the first explicitly put forward "to explore the establishment of policy oriented agricultural insurance system" so far. Every year the First File of the Government establish the policy formulation and implementation of agricultural insurance requirements and instructions. March 1,2013 as a guide to China’s agricultural insurance and health development of the "Agricultural Insurance Regulations" formally implemented, clear the agricultural insurance industry management and implementation framework. Agricultural insurance has become an important part of the insurance system in the world, and there are some problems in the actual operation of our country: The development model of agricultural insurance is still in the exploration stage, cannot support the whole industry’s orderly and healthy development;Second. Supporting laws and regulations related to the agricultural insurance is still in the primary stage, those policies caused no laws, cannot cure, do not have the right to treat the phenomenon;Three. The risk of agricultural insurance is mainly concentrated in the agricultural insurance companies, unable to effectively disperse and hedge;Four. The agricultural insurance subsidy has resulted in the huge profit of the agricultural insurance company, and cannot be real and effective;Five. Information, data asymmetry, and policy advocacy, the intensity of the implementation of such factors as the moral hazard cannot be put an end to the agricultural insurance market. Etc.. This paper begins with the development of agricultural insurance in China, analyzes the current situation of agricultural insurance in China, and analyzes the practical situation of agricultural insurance industry by using Five Forces models (Porter Mike). As a policy oriented agricultural insurance industry, its development is influenced by various factors such as government, agricultural insurance companies, farmers, potential competitors, risk control and so on.Faced with the development of China’s agricultural insurance industry, China’s agricultural insurance in the short term will continue to maintain the business to support business, risk self financing, but from a long-term perspective, as an important strategic measures for the livelihood of China’s agricultural insurance legislation, based on agricultural insurance legislation, with financial subsidies and tax policies as a means to catastrophe risk control measures to establish a national policy oriented agricultural insurance company as the target.In the end, the paper puts forward some suggestions on the establishment of a national policy oriented agricultural insurance company, such as the necessity, purpose, function, risk diversification, reinsurance mechanism and risk control. It is limited by the collection of relevant data of agricultural insurance and the understanding of national macroeconomic regulation and control. This paper analyzes and forecasts the future development of agricultural insurance. The more the direction and the corresponding measures are needed. Hereby prompted.