Study On Crop Area Yield Insurance Products

As an innovative insurance product,area yield insurance is based on the risk area and is used to determine the rate of different risks.It can effectively solve the problem of adverse selection brought about by the unified protection system of “one province,one product and one rate”,and realize the consistency of insurance burden and insurance liability.At the same time,the insurance is based on the production of the region as a basis for compensation,which simplifies the process of nuclear damage and loss,can greatly reduce the cost of operation and management,and make up for the inherent drawbacks of traditional agricultural insurance.Based on this need,this study takes Shandong Province as an example,uses 133county-level data from 2006 to 2017 to design area yield insurance products.The specific research contents are as follows:Firstly,this study has a deep understanding of the relevant theories and the basic methods for determining the area yield insurance premium rate,and has compiled the product research and pilot situation of area yield insurance in China at this stage.By summarizing the technical difficulties and practical obstacles in each link,it provides the necessary theoretical support for the subsequent product design.Secondly,through a comprehensive analysis of the risk of wheat production in Shandong Province,this study uses the comprehensive index method to construct a risk assessment system including four factors from the perspectives of risk,vulnerability and damage resistance.On the basis of factor analysis method,the risk division is carried out by combining the inter-group connection method in the hierarchical clustering method,and finally the 133 county production units in Shandong Province are divided into three risks:high,medium and low.Finally,this study selects the HP filter analysis method to fit the trend yield of each risk area of wheat in Shandong Province,and then calculates the risk loss rate.Then,use the empirical rate method and the non-parametric information diffusion model to estimate the probability of loss and determine the rate,and finally determine the yield insurance pure rate for the three risk zones of high,medium and low wheat in Shandong Province.The results show that the overall risk of wheat production in Shandong Province is low,even at the 100% guarantee level,the pure rate of high-risk areas is only 2.46%,lower than the current 6% insurance coverage rate for wheat insurance.Moreover,the pure rate levels between different risk grade regions of wheat vary greatly.The high risk zone rate is about 2.3times that of the medium risk zone,and the medium risk zone is about 2.5 times that of the low risk zone.Therefore,it is necessary to implement a partitioned differential design for crop area yield insurance.