The Feasibility Study Of Tea Weather Index Insurance In Guizhou Province

In June 2013,CIRC stated in its "CIRC Circular on Further Implementing <Agricultural Insurance Regulations> Doing a Good Job in Agricultural Insurance" that "we should actively promote product innovation to meet the needs of different parties for insurance protection,and encourage insurance companies to actively research and develop Exponential insurance products,especially price index insurance,meteorological index insurance and other new products,continue to meet the growing needs of the majority of farmers risk protection." On August 13,2014,the State Council issued "Several Opinions on Accelerating the Development of Modern Insurance Services",and clearly proposed to encourage insurance companies to "actively explore new types of insurance products and services such as meteorological index insurance" from a strategic height of enhancing social security for people's livelihood Affirmed the meteorological index insurance status.From this point of view,the development and promotion of weather index insurance is more and more supported and endorsed by all walks of life.Due to the defects of the traditional agricultural insurance,the adverse selection and moral hazard faced by it are more serious,leading to the high operating cost of the insurer operating agricultural insurance,which makes the traditional agricultural insurance market into a development predicament.In order to improve this situation,the reform and innovation of traditional agricultural insurance has become inevitable.In 2014,Guizhou Province released the document "Guizhou Province Tea Industry Promotion Three-year Action Plan(2014-2016)",pointing out that it is necessary to vigorously develop the tea industry.With the efforts of all parties,the tea industry has developed rapidly and has become one of the "fifth business card ".In 2016,the province's tea plantation area reached 6,960,000 mu with a total output of 284,000 tons and the integrated output value reached 50.22 billion yuan.As the major source of income for the tea growers and tea enterprises in Guizhou Province,the processing and production of tea is an important support for millions of tea farmers in getting rid of poverty and getting rich in Guizhou Province.It occupies a very important position in the agricultural economic development of Guizhou Province.However,the frequent occurrence of natural disasters has caused tremendous economic losses to tea production throughout Guizhou Province every year,which has seriously hindered the production and living of tea farmers and the development of tea industry in Guizhou Province.Meteorological index insurance,as an innovative product of agricultural insurance,has obvious advantages in helping farmers to transfer risks and promote their application.Tea meteorological index insurance can effectively overcome the problems such as adverse selection,moral hazard and information asymmetry faced by traditional agricultural insurance,and can avoid the difficulties of traditional agricultural insurance investigation,such as difficult identification of losses and losses,especially for Guizhou Province,where the topography of tea cultivation is complex.Therefore,this paper first reviews the research background,purpose and significance of tea leaf weather insurance in Guizhou Province and the research results at home and abroad.Secondly,it introduces the concept of meteorological index insurance and its background,compares it with traditional agricultural insurance Compared and analyzed and summarized their respective advantages and disadvantages,combined with the analysis of the application of meteorological index insurance in the domestic and foreign applications provide theoretical support for the implementation of the Guizhou Tea Meteorological Index Insurance.Again,this paper analyzes the feasibility of developing meteorological index insurance in Guizhou Province.On the one hand,theoretical analysis is made on whether Guizhou Province has the conditions to develop meteorological index insurance from three aspects of reality demand,economic foundation and system basis respectively.Re-analyzed and introduced the insurance products of tea weather index insurance in Guizhou Province.This paper verifies the feasibility of tea weather index insurance by using the vector autoregressive(VAR)model to explore the relationship among premium income,premium subsidy ratio,minimum temperature,and tea production.Finally,some suggestions are put forward to promote the tea weather index insurance in Guizhou Province from multiple perspectives,trying to provide some references for the implementation of the tea leaf weather index insurance in Guizhou.Promoting the development of tea meteorological index insurance in Guizhou not only helps the tea farmers transfer the natural risks of agriculture and ensure the orderly development of agricultural production,but also helps insurers effectively reduce the claims costs,improve the efficiency of agricultural insurance and effectively promote the agricultural development in Guizhou Insurance market development.