Study On The Natural Rubber Price Risk Management By Using "Insurance+Futures" Model In Yunnan Province

Natural rubber is an important strategic material and industrial raw material in China,which is closely related to People’s Daily life and plays a key role in the fields of industry,national defense and medicine.Yunnan province is located in the southwest border of China,is one of the important planting areas of natural rubber in China,is the most important income source of yunnan farmers crops,is the vast majority of farmers living channels.Therefore,how to avoid the risk of income loss caused by the fluctuation of natural rubber price has become the key link to ensure the poverty alleviation of farmers.In view of the risk of agricultural product price fluctuation,the traditional risk avoidance methods mainly include two methods.First of all,farmers buy insurance,and insurance companies spread risks through reinsurance companies,but such single behavior still leaves insurance companies with huge risk exposure.The second is the natural rubber futures contract.By using the price discovery and risk transfer functions of the futures market,farmers and agriculture-related enterprises can use the futures market to hedge the risks caused by spot price fluctuations.However,there are huge technical barriers for farmers and agriculture-related enterprises,which are not easy to operate.In order to avoid of the flaws of the traditional method in 2017 launched in our country "insurance + futures" innovative service mode,"insurance + futures" is essentially a kind of price index in the insurance insurance,unlike the general price index insurance is that it in the futures market prices in agricultural prices index insurance product price index to determine the target price and compensation standard,the model has remarkable achievements in agricultural market price risk.China’s agricultural insurance is gradually developing from the mode of low guarantee,insurance cost and wide coverage to the direction of guaranteeing output,output value and income.Therefore,"insurance + futures" service mode can well expand the insurance service mode.This paper mainly USES literature analysis,empirical analysis and other methods to expound the basic principle,operation mechanism and risk transfer process of "insurance + futures" service mode based on the actual situation and economic development of yunnan province,one of the pilot areas of "insurance + futures" service mode.It fully illustrates the role of "insurance + futures" service mode in the agricultural product price risk management system.This paper takes natural rubber as the reference object and "insurance + futures" service mode as the background to prevent farmers’ losses caused by the price drop of natural rubber.Firstly,this paper expounds the current situation of natural rubber cultivation in yunnan province,the theory of agricultural product price risk and the regulation system of price fluctuation in China,introduces the advantages of risk insurance of agricultural product price index in China,and learns from the operation mode of price risk management in the United States and Japan.It reveals the factors influencing the price fluctuation of natural rubber and the analysis of the volatility of futures price.It shows that the price of natural rubber is likely to fall off a cliff,leading to losses of farmers.Therefore,the service mode of "insurance + futures" will play a role in providing income for farmers and agriculture-related enterprises.Considering the integrity of the risk transfer process,this paper focuses on the risk diversification strategies of farmers and agriculture-related enterprises,insurance companies and futures companies in the risk management process of "insurance + futures" service mode,and finally puts forward development Suggestions.