Weather Index-based Insurance And Agricultural Insurance Products Innovation

Index insurance is a relatively new but innovative approach to insurance provision that pays out benefits on the basis of a predetermined index(e.g.rainfall level)for loss of assets and investments,primarily working capital,resulting from weather and catastrophic events,without requiring the traditional services of insurance claims assessors.It also allows for the claims settlement processes to be quicker and more objective.it can break through the predicament of traditional agricultural insurance products,many countries have started the weather index insurance at present.In this paper,the traditional agricultural insurance products,the weather index insurance product development,the product characteristic has carried on the system research,on the premise of comparing of the weather index insurance product and the traditional agricultural insurance products,It is concluded that the weather index insurance product has the advantage to avoid the risk of moral hazard and adverse selection and reduce the information asymmetry on the business process and operation mode.At the same time learn from the theory and practice experience at home and abroad,and put forward to increase meteorological infrastructure construction,keep the data completeness and meteorological data entry,and also the suggestion to strengthen farmers' insurance education so as to improve the weather index insurance product design.Finally,taking Guangdong province as an example,design the rice weather index insurance product products in Shaoguan,Heyaun,Guangzhou.