Systemic risk, Asymmetric Information and dual externalities are universal causes of the market failure of agriculture insurance, and in China the insufficiency of the institution is the main cause.
The failure of the market provide the theories basis for the government intervention and establishing the policy subsidy type of the agricultural insurance system,but excessive government intervention with high policy subsidy not only can't resolve the failure of the market,on the contrary would produce a series of negative effect,distort the resources installing function of the market mechanism.
By the end of 2004,the national premium has reached to 431.81 billion Yuan,which increases 11.3% compared with that in year 2003.However the agricultural insurance(AI) market is distinctly different,the premium in this market gets lower and lower.
Aiming at these three greatest attributes, the author think that re-insurance, government intervention and mutual organization are the main measure to solve out of order of the agriculture insurance.
In the region, the agricultural insurance market is nascent but there are encouraging signs.
例句来源
This paper analysis the domestic and overseas literatures of the failure and policy subsidy in crop insurance market. It believes that take the Character of quasi-public goods and external effect that the crop insurance produce as an argument of the failure of crop insurance market and policy subsidy is not strictness. It puts forward the main basis of the policy subsidy of crop insurance theory is the degree of policy subsidy that the crop insurance need depends on the role of it as a support-agriculture t...
The operation of commercial agriculture insurance has been reduced sharply since 1992. the biggest obstacle of the business of companies is too high compensation rate, and this leads to thinness of the supply and demand on the market. In this case, the article puts forward advice on establishing the efficient multiple compound agriculture insurance system including policy insurance institutions, commercial insurance institutions, and cooperative and so on, taking principles of the maximum social benefits, n...
After China's acceding to WTO, the agriculture needs insurance urgently because of market risk and nature risk. But the commercial agriculture insurance in China plunges into the condition of market failure. Systemic risk, Asymmetric Information and dual externalities are universal causes of the market failure of agriculture insurance, and in China the insufficiency of the institution is the main cause. Therefore we must increase the supply of the institution and design the framework of agriculture insuranc...