Research On The Optimal Design Of Revenue "Insurance+Futures" Product Introducing Weather Index

Affected by climate change in recent years,extreme weather has occurred frequently,and agricultural growers are facing more fluctuating weather and climate.The current policy-based agricultural insurance is difficult to fully meet the security needs of new agricultural business entities.Actively carrying out product innovations such as income "insurance + futures" pilots and weather index insurance are important ways in the rural revitalization strategy.In the current income "insurance + futures" model,the target output and settlement output of the income insurance contract adopt the historical average value of actual output and the measured value of the current period respectively.However,this brings the following three problems: First,the measurement of output data is difficult.The frequency is low,the cost is high,and the results are space-time dependent.Secondly,the difficulties of insurance companies to investigate and determine losses lead to high operating costs,information asymmetry and moral hazard problems.Finally,it is difficult for insurance companies to use financial derivatives to hedge production risk.In order to solve these problems,this paper tries to introduce the weather index to optimize the design of income "insurance + futures" products,so as to reduce the operating costs of insurance companies,improve the operating efficiency of insurance companies,and increase the output risk hedging channels of insurance companies.During the operation of income "insurance + futures",there are two risk transfer processes among farmers,insurance companies and futures companies.The first transfer of risk is that farmers transfer price risk and output risk to the insurance company by purchasing income insurance from the insurance company;the second transfer of risk is that the insurance company transfers price risk to the futures company through OTC options.Therefore,the optimization design of introducing the weather index into the income "insurance + futures" mainly includes two parts:(1)Based on the multivariate weather index,optimize the design of the target output and settlement output in the insurance contract,and the calculation of the premium is also done(2)In addition to using agricultural product price put options to transfer the price risks faced by insurance companies,design multiple weather index option contracts based on the production factors of insurance contracts,and complete the production risk transfer of insurance companies in a market-oriented manner.This paper takes the soybean pilot project in Hailun City,Heilongjiang as an example to carry out empirical analysis,and considers the impact of temperature and rainfall fluctuations on soybean yield,and optimizes the product design of the pilot project.The simulation results show that: first,the premium rate of the income insurance contract is similar to the premium rate of the current pilot project of soybean income insurance in Helen City,and the total insured amount and compensation amount are slightly reduced;second,the insurance company adopts soybean price put options and multiple The weather index rainbow option product diversifies price risk and weather risk respectively to form a more effective means of risk transfer;third,under different weather conditions,thanks to the compensation from the income insurance contract and part of the premium from financial subsidies,the income of farmers can be guaranteed.