A Study On The Impact Of Natural Disasters On The Demand Of Agricultural Insurance In China

In the past 100 years,the global warming caused by industrialization has become increasingly serious.Natural disasters are more severe and bring greater harm to agricultural production than before.Agricultural insurance is an effective way to fight against the dual risks of nature and market.Since the China Insurance Regulatory Commission started the pilot program of policy-oriented agricultural insurance in Shanghai,jiangsu,xinjiang and other nine provinces(cities)in 2004 and gradually extended it to the whole country from 2007,agricultural insurance began to enter the leap development period.This paper takes HuBei province as an example and the main research object are natural conditions and framers’ real demands for agricultural insurance.The paper aims to analyze their basic characteristics,reveal the impact of different levels of natural disasters on farmers’ insurance demands and explore whether farmers’ real insurance demands are satisfied in the realistic cases.On the one hand,the article make descriptive analysis on the overall status and regional characteristics of agricultural insurance in HuBei province with the provincial and municipal data.On the other hand,the Probit model was built to analyze the impact of natural disasters on farmers’ insurance demands with the microscopic survey data of xiantao,jianli and zhuxi regions.Based on the above research,this paper explores the consistency of farmers’ willingness and actual behavior for agricultural insurance.The study is helpful to find out the existing problems of policy-oriented agricultural insurance and provide decision-making basis for government departments to improve the agricultural insurance system,which is of extremely important practical significance.The findings are as follows:(1)the implementation of policy-oriented agricultural insurance in 2007 has significantly promoted the development of agricultural insurance market in hubei province,but it has insufficient stamina and obvious regional differences.(2)on the whole,the natural disaster level has a positive impact on the demand for agricultural insurance,but the effect varies slightly according to the disease type,disease frequency and disaster loss degree.(3)the demand for agricultural insurance has not been effectively and reasonably satisfied.The phenomenon of "over-insurance" in areas with good natural conditions coexists with the phenomenon of "under-insurance" in disaster-prone areas.According to the conclusions,the following suggestions are put forward:(1)strengthen the publicity for the policy-oriented agricultural insurance and improve farmers’ cognitive level and risk awareness.(2)strengthen the supervision of insurance companies and strictly regulate the order of the insurance market.(3)optimize the premium subsidy mechanism of agricultural insurance and formulate differentiated subsidy policies according to the actual situation.(4)improve the mechanism for distributing catastrophe risks in agricultural insurance.