International experience developing agricultural insurance ?Agricultural insurance is for agricultural producers engaged in planting and breeding production process, on the victims of natural disasters and accidents, the economic losses caused by a kind of insurance to provide protection. In the current context of economic globalization, the development of agricultural insurance can not only dispersed nature of agricultural production risk, the implementation of agricultural production, economic compensation before and after childbirth, stable income of peasants, but also improve the credit level of the main agricultural operations, and promote rural finance system stability, increase agricultural production and management standards and international competitiveness. Development of agricultural insurance is a systematic project, involving legislation, financial subsidies, tax benefits, reinsurance arrangements, catastrophe risk fund, credit support and organizational structure and other aspects, which is quasi-public agricultural insurance products by the special nature of the decision . Around these issues, I mainly talk about the current development of agricultural insurance Understanding. Increasing the financial subsidies, and promote sustainable development of agricultural insurance From the international point of view, all agricultural insurance Gaode better country, the government have given a wide range of support, such as the implementation of tax policy, to give a certain percentage of premium subsidies, the Government has come forward to the development and implementation of agricultural insurance scheme. In contrast, subsidies of agricultural insurance in China is obviously insufficient, which is constraining the development of agricultural insurance, the main reason. Because in the economically underdeveloped areas, most farmers in the net of various living expenses, children&#39;s education expenses, buying necessities such as pesticide and fertilizer fees, very little disposable income. If the remaining income for most farmers to buy rates as high as 6% to 10% of the agricultural insurance products, is almost impossible. Our limited financial resources, financial subsidies should adhere to basic principles of protection, insurance, first select the people&#39;s livelihood, the subject of planting, and mainly the implementation of premium subsidies could be considered first on rice, wheat, corn, soybean and cotton crops to provide premium five subsidies, premium subsidy standards generally 30% to 50%. The amount of agricultural insurance to protect farmers should be to maintain the basic re-productive as the starting point, the insurance amount is based on direct physical and chemical costs, the premium rate is determined on the basis of the average loss rate. Moreover, given the decentralized nature of agricultural production, the complexity of exploration risk, high cost of agricultural insurance company, China should also learn from international experience, according to the size premium of 5% to 7% on operating agricultural insurance business insurance companies management fee subsidies. Some people say that agricultural insurance is a bottomless pit, unable to fill. Is that true? Here we have the size of financial subsidies to agricultural insurance to be a general estimate. The first step, we estimate the direct materialization cost of five major crops based on the amount of insurance. According to the National Bureau of Statistics survey showed Rural Investigation Team, net of labor costs, the farmers grow food in 2004 put the average 201.5 yuan per mu. The second step, according to the standard estimate of 2004 rice, wheat, corn, soybean and cotton crops sown area of five, as 13.82337 million mu. The third step, we estimate that the average loss rate of five crops. Heilongjiang Land Reclamation for 10 years we have accumulated in rice, wheat, corn, soybean crops risk loss of four kinds of data, setting a 10% error range, it can be inferred in general the risk of loss of the national average rate of 11.898% ~ 14.542%. The fourth step, the estimated premium rates for the five crops. Although based on the determination of premium rates based on loss rate, but the loss of control and poor agricultural insurance, moral hazard and adverse selection may occur, in order to avoid these risks, in the development of the insurance provisions, to take absolute deductible rate control, we deducted by the loss rate in excess of 30% to determine premiums. So that we can measure the five major crops initial premium rate is 8.325% ~ 10.175%. With these data, we can estimate the financial premium subsidy standards and scale. Suppose that 70% of the national rice, wheat, corn, soybeans and cotton insured that the insured rate was 70%, the proportion of financial subsidies comprehensive 50%, the total fiscal subsidies size 81.16 ~ 9.92 billion yuan (example is shown below ). 201.5 (yuan / mu) × 13.82337 (mu) × (8.325% ~ 10.175%) × 70% × 50% = 81.16 ~ 99.20 (million) China&#39;s major crops on the scale premium subsidies for the initial estimates can be seen, as long as the annual financial subsidy of 100 yuan, you can start the main crop in the country&#39;s insurance, China already has the financial ability to subsidize the insurance of crops. Adhere to the voluntary insurance and compulsory insurance, and to improve agricultural insurance insurance rates Foreign proved simply raise premiums to subsidize agricultural insurance can not effectively improve the enrollment rate, if fully implemented voluntary insurance, agricultural insurance market, adverse selection problem will be very serious, not only can not increase insurance rates, even at low participation insurance rates and the vicious circle between high premiums, leading to shrinkage of agricultural insurance market. To address the conditions of voluntary insurance agricultural insurance insurance rates low, many countries have adopted laws and regulations, will participate in agricultural insurance and enjoy other preferential policies linked to agriculture, attracting a large number of farmers to insure adequate. Japan in 1947, &quot;Agricultural Disaster Compensation Law&quot;, where the significance of the people&#39;s livelihood of food crops, livestock and other statutory insurance coverage for compulsory insurance. In 1994 the United States, &quot;Agriculture Insurance amendment&quot; clearly defined, not participate in the crop insurance scheme farmers can not get other government benefits programs such as agricultural products (21.90,0.00,0.00%), loan schemes, agricultural price subsidies and protection programs. France &quot;Agricultural Insurance Act,&quot; provides some related to the national economy and the main crops (rice, wheat, barley, fruit trees, etc.) and the main domestic animals (cattle, sheep, horses, pigs, silkworms, etc.) to implement mandatory insurance. Philippines, Thailand, India and other countries are also those who are insured crop and planting of this crop production loans for farmers to compulsory insurance. In China, December 28, 2002 as amended &quot;Agriculture Law&quot; 46th article: the implementation of agricultural insurance, the principle of voluntariness. No organization or individual may compel farmers and agricultural production and operation organizations to participate in agricultural insurance. Farmers with low income, low income from farming of agricultural production costs are high, weakening the voluntary purchase of agricultural insurance, the economic base, increase the development of agricultural insurance in China at this stage difficult. As the large regional differences in China, in enhancing agricultural insurance mandatory practices abroad could not be copied, but can not engage in &quot;indiscriminate&quot;, sum up experience in practice should be based on a gradual manner. Catastrophe risk fund established to enhance agricultural insurance companies against catastrophic risks As the agricultural risk of high relevance, resulting in agricultural risk at the time and space, not easy to spread, it is easy to form agricultural catastrophe losses, eating all the agricultural insurance company reserves and capital, to restrict the sustainable development. But to remove the agricultural catastrophe risk, not the insurance company itself can solve agriculture and, therefore, need to establish under the central government-led agricultural catastrophe risk fund, suffered catastrophic losses on agricultural insurance companies to provide some degree of compensation, enhanced resistance to giant disaster risks. Catastrophic risk fund raising should be country-driven, local secondary, raising channels should include: national financial allocations; from rural insurance company no big disaster years of agricultural insurance premiums taken out part of the accumulated savings; agricultural insurance company tax breaks part; from disaster prevention, mitigation and disaster relief expenditures and the special subject of agricultural insurance services to extract the corresponding part of the funds; every year from its grain risk fund countries taking part, will integrate these resources to enrich catastrophic risk fund. In addition, also by the policy insurance agencies in the capital market catastrophe risk fund bonds issued to improve catastrophe risk fund reserve capacity. According to experience data, generally 10% of premium income more appropriate provision for catastrophic risk fund. Nationally, only if catastrophic risk fund 60% of financial support, 70% of the insured in case, you need to budget for each of 5 to 600 million yuan. The use of catastrophic risk fund include: normal times, and catastrophic risk fund to increase not only the use, once the major natural disasters occur, agricultural insurance excess of loss catastrophe risk fund in part by the agricultural damages, it is subject. In addition, agricultural catastrophe risk fund a small portion can be used for other purposes, such as by building irrigation facilities to prevent floods and drought; through vaccination in the prevention of livestock diseases; support of agricultural research institutions in disaster occurrence, risk early warning system for the establishment of agriculture to provide the scientific basis for such. Jia Jiang catastrophic risk fund for the management, should establish a national agricultural catastrophe in the central risk management agency funds various forms of business insurance, the main Nong Ye, An Zhao Yuan Ze to the insurance agency business Zai Gou Mai reinsurance, or in the event of catastrophe excess Peifu of cases, excess of loss paid by the agency part of the risk of loss, dispersion management of the main agricultural insurance risk. The establishment of reinsurance mechanisms to spread the risk of agricultural insurance business As the agricultural insurance risk, regional strength, the event of disaster may be a short time to several counties, or even the object of insurance in several provinces, also causing enormous losses. This makes a lot of insurance companies can not set targets to spread agricultural risks, insurance companies target the more risk the higher the concentration, the greater the business risk insurers. Therefore, agricultural insurance in developing countries in the world when they establish an effective mechanism for risk diversification of agriculture, agricultural risk through reinsurance or other forms of fund managers to spread the risk of agricultural insurance. At present, agricultural insurance, reinsurance lack of appropriate policies, measures, purchase of commercial re-insurance costs are too high, business re-insurance sector on agricultural insurance, reinsurance issues with great care, agriculture reinsurance difficult, are the experiments across the common issue . In this case, a re-insurance mechanism, one need for the national financial investors to set up China&#39;s agricultural re-insurance companies, and 以 the form of law provide for any form of agricultural insurance, Bi Xu Re Fenbao to agriculture, Chao lost in part by the state finance burden; Second, countries need to formulate preferential policies to support the China Reinsurance Group Company for the various institutions engaged in agricultural insurance, risk diversification, the policy points into the agricultural insurance premiums, set up a special fund, the Fund accumulated surplus, the year of catastrophe with a revolving fund for damages, the difference in part by government subsidies; Third, all subjects have the insurance and international reinsurance companies to explore co-operation, the risk of agriculture spread to a wider scope. Development tax incentives, to expand the coverage of agricultural insurance In China, the current tax regulations, agricultural insurance, exempt from business tax and stamp duty. This is in a certain period to reduce disaster losses, reduce farmer income volatility and promote the development of agricultural insurance has played a positive role, but only the definition of agricultural insurance in the planting and breeding. At present, China&#39;s agriculture is in the transformation of traditional agriculture to modern agriculture, a critical period, agricultural insurance should be fully involved in agricultural production, farmers living and rural markets, whether farmers or their personal property, whether it is irrigation and water conservancy facilities, or processing of agricultural products should have appropriate insurance services, so for the Full Play to Agricultural insurance, financial compensation, financing and social management capabilities, future, the government should adjust the industrial structure and rural economic and social development needs and formulate tax incentives and gradually expand the policy agricultural insurance coverage. For example, exempt from both planting and breeding industry, while business tax and stamp duty, income tax exemption from planting and breeding of two industry; of other agriculture-related insurance, business tax by 5% front-end, according to the return of 3%, stamp duty by 0.1% front-end, by 0.05% return, will return taxes to enrich the risk fund. Increase of agricultural insurance and credit support, promote financial deepening Agricultural insurance and rural credit will be combined, is the United States and France and other countries to carry out an important experience in agricultural insurance. For China, the agricultural insurance better developed areas, agricultural insurance, the insured can provide loan guarantees or insurance provided to low-interest agricultural loans of financial institutions interest subsidy, when the conditions are, you can participate insurance as a condition of loan; of operating agricultural insurance companies with insufficient flow of funds, allowing it to apply for a specified amount of interest-free or low-interest loans; encourage agriculture by insurers of existing rural financial institutions sell insurance products. Agricultural risk management institutions set up to co-ordinate the development of National Agricultural Insurance The complexity of agricultural insurance not only in its exhibition industry, insurance, disaster prevention and impairment, claims and other business aspects, more important is the agricultural insurance has a strong policy to require coordination across sectors. For example, agricultural insurance, the need for adjustment of agricultural structure and promote government services, this policy is formulated by the Ministry of Agriculture and Development and Reform Commission; and subsidies for premiums and investment management fees to the decision by the Ministry of Finance. This requires the management of agricultural insurance agency and have a good ability to communicate the relevant departments. With the expansion of the scale of agricultural insurance, China should draw on the United States and other countries of the Jing Yan, timely Kaolv the establishment of agricultural Fengxian administration to form the National Agricultural Risk Authority or the Ministry of Finance led by the State Council, Ministry of Agriculture, CIRC and Reform Commission agricultural insurance and other departments together constitute the Management Committee, co-ordinate the development of national agricultural insurance. Its main functions are: co-insurance and commercial insurance companies entered into reinsurance contracts to provide reinsurance; to purchase an insurance policy the insured to pay premiums of agricultural subsidies, agricultural insurance operators to pay management fee subsidies; promotion of existing agricultural insurance, insurance, and to help develop new types of insurance; responsible for the reasonableness of the premium rate comments; of the current shortcomings of agricultural insurance system, and a revised proposal; in charge of agricultural insurance operators over the re-insurance fund and the compensatory fund ; to a serious loss of agricultural insurance operators to provide low-interest or interest-free loans; crop insurance to carry out extensive promotional activities, risk management education for farmers; and so on. Promote Agricultural insurance legislation, strengthen the agricultural insurance system Agricultural insurance, dependence on the relevant law is quite strong, but China has not been established agricultural insurance laws and regulations. The current &quot;Insurance Law&quot; states: state supports the development of agricultural services, insurance, utilities, agricultural insurance by law, administrative rules and regulations separately. In practice, agricultural insurance in accordance with the &quot;insurance law&quot; standard. Since the majority of agricultural insurance business with policy, its business philosophy, business model, business rules and business methods and management of insurance is fundamentally different, so the existing &quot;Insurance Law&quot; does not apply or do not fully apply to agricultural insurance. Unable to follow, so that agricultural insurance in many areas there is a legal vacuum, in a dominant position in agricultural insurance is not clear, even if the government actively participate in and promote, a lack of legal basis. Lag in legislation restricting the development of agricultural insurance in China is one important reason. Therefore, China needs to learn from international experience, specifically through legislation at all levels of government work in agricultural insurance in the function and role, a clear national policy to protect the input and measures, specifically the implementation of agricultural insurance, the scope and implementation modalities, specifically regulate the operation of the main agricultural insurance participate in the main, the main benefit of the rights and obligations. From all over the country carried out pilot current situation of agricultural insurance, vary widely between various parts of the current conditions of national uniform legislation is not yet ripe. To finish the pilot local governments, insurance regulators and agricultural insurance company in the area of agricultural insurance business model, develop appropriate agricultural insurance local regulations. According to local regulations and conditions of the trial, the development of agricultural insurance regulations by the State Council until the conditions are ripe, then the development of agricultural insurance law.
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