Research On The Application Of "Insurance+ Futures" Financial Business Model By PICC P&C

At present,the government has developed the financial market steadily in the context of China's supply-side reform.China's futures market and insurance market have become increasingly prosperous.The "insurance + futures" business model has gradually developed into a public concern business model.This paper analyzes practical cases of PICC P&C operation "insurance + future" financial business model,and studies the financial business model of "insurance + futures" by the logical idea of discovering the problem,analyzing the problem and putting forward safeguard measures(solving the problem).The basic principles of the "insurance + futures" financial business model are as follows: Firstly,agricultural cooperatives or agribusinesses transfer risks to insurance companies by paying premiums and purchasing insurance premiums from insurers.Agricultural product price insurance developed by the insurance company is based on the corresponding agricultural futures prices in the future market(the corresponding futures price is the main price of futures contracts).Secondly,the insurance company transfers the risk to the futures company by paying the premium to the futures company and buying the off-exchange options developed by the futures company.This cooperation is equivalent to the insurance company reinsurance.Thirdly,according to their own professional advantages,futures companies generally through the subordinate branch(risk management company)transfers the option position exerted by the insurance company into futures positions,which will be pushed to the futures market.Futures market speculators to undertake these positions,so that the futures company transferred the risk to the futures market.Through this "insurance + futures" financial business model,the risk of falling agricultural prices successfully transferred,the final result is the risk of being dispersed,the tripartite common benefit."Insurance + futures" financial business process is a risk transfer business process.This paper analyzes the typical cases of XHRF futures company corn and MEY futures company eggs operated by PICC P&C.In the course of practice,there are some problems such as the distribution of contract month,the lack of risk hedging tools,the poor convergence of insurance companies and futures companies,and the lack of professional insurance companies.However,with the development of supporting measures,PICC P&C and the relevant cooperation units to innovate risk hedging tools,the rational use of futures contracts,strengthen business communication and learn from the US agricultural insurance revelation.Through these efforts,I believe that the related issues will be gradually resolved.At the same time,according to the development of related supporting measures,PICC P&C has adopted the ADS option,option and futures sharing code and account,developed "insurance + futures + Internet" business model to improve this business model.The operation of the "insurance + futures" financial business model is of great significance:First,it provides a new idea for the reform of agricultural policy.Secondly,it creates a new business development space for insurance companies and futures companies.Finally,it provides new protection for agricultural development.