The agricultural insurance development pattern

The agricultural insurance development pattern
A, the development of the agriculture insurance in the end of the 19th century to the beginning of the 20th century, some private commercial insurance companies in the United States agricultural insurance business.Agricultural insurance has the characteristics of risk, thus requiring insurance companies to do business on a wide range to spread the risk.Private insurance companies due to the limited funding, the low degree of diversification, and the lack of insurance statistics, danger is planted Settings, and many other reasons, have failed.In order to protect the interests of the agricultural producers, maintain the stability of agricultural prices, maintain the stability of the agricultural development and agricultural product supply, and promote the reasonable make full use of land resources, the U.S. Treasury Department was established in 1922 the agricultural disaster insurance division and the special committee, to study the feasibility of the agricultural disaster insurance.Crop insurance executive committee after the research of crop insurance problem that crop production by predicting the farmers natural risk cost, and as a crop insurance premium, establish common reserve fund insurance, can on crops due to compensate the loss caused by natural disasters, so as to lighten the burden of concern and farmers continue to invest in production.Was promulgated in 1939, the U.S. federal crop insurance law (TheFederalCropInsuranceAct), and founded the federal crop insurance companies in accordance with the law, began to crop insurance pilot program, the main crops of possible natural disasters and plant diseases and insect pests for insurance, as the basic guarantee of the value of crop production;Run by state-owned insurance institutions, farmers voluntary participation;Government subsidies for premium part generally don't give only burden crop insurance surcharge.By congress in 1945 to restore more disasters crop insurance, and in two years, decided to revising the crop insurance law.The law limits the regional scope of crop insurance, and asked the federal government to give subsidies;At the same time, congress should pass laws to provide disaster assistance and emergency loans, in order to protect the entrust of ginseng protect farmers.However, on the one hand, because the federal government crop insurance subsidies slow growth, farmers rarely willing to buy crop insurance;Disaster aid and, on the other hand, the existence of emergency relief, also limits the crops

Insurance smoothly, resulting in agricultural production in only a small part of the insurance, risk cannot be adequately dispersed.Loss rate is higher, the congress to reduce the scope of many disasters crop insurance, in order to reduce insurance losses.In 1956, the United States began to pilot "crop hybrid risks".By 1977, all kinds of "crop hybrid risks" of some insurance companies 20% of the total volume of business.Although American agriculture is usually for mass production, the risk is big, very need to crop insurance, insurance business is mainly composed of state-owned insurance agency business, can guarantee in case of large scale disasters, it can take on all the insurance liability, and commercial insurance company contrast reserves is usually small, hard to take full responsibility.But federal crop insurance volunteered for the foundation, makes the average crop insurance to join rate is low, the area of the crop insurance is limited, farmers' participation rate is very low.To 1980, the federal crop insurance law formally to comprehensive all over the country, the law has been amended before and after 12 times.In 1980, the bill to add more to promote producers actively involved in the terms of the and congress wants private insurance companies can crop insurance marketing and development in the future play a major role.The implementation of the law, represents the beginning of the federal crop insurance company of the joint venture, at the same time also makes the crop insurance developed rapidly in the United States, to 1990, insurable crop species have increased by 28 species to 50 kinds, insurance will cover all of the country's counties.But at this stage, the ministry of agriculture has continued to provide producers with cash or disaster relief assistance in the form of loans, makes the expected rate is less than the government.And a severe drought in 1981, 1988, 1989, also makes the crop insurance loss rate is still high.Really makes substantial changes in federal crop insurance, and eventually replace the government temporary disaster aid, is the United States congress in 1994, according to the federal crop insurance law problems arising from the implementation, especially for several years of high loss ratio and repeat the forehead compensation problems, for the method to revise again, produces the crop insurance reform act of 1994 (CropInsuranceReformActof1994).Act with private insurance companies by state-owned federal crop insurance companies jointly provide producers with catastrophe risk insurance, only pay for the management of the small producer.Private insurance companies also provide producers with extra risk insurance is higher than the basic insurance level.Intervention of human and private companies and the professional skills and make more catastrophe risk insurance has made great development.To expand coverage, the cancellation of the interim government subsidies, make the bill after implementation rate greatly improved.In 1998, congress established the crop income insurance, producer income insurance plan.In 2000, the federal crop insurance law revision again, by increasing crop and livestock insurance coverage and improve the participation of insurance subsidies.And the federal government spending also steadily declining in crop insurance, actuarial performance gradually increase., during 1991-2000 loss rate (pool/insurance) have fallen by 1981-1990, 1153 to 1107, in 2001-2005, estimates that the average loss rate for 0193.

Second, the American agricultural insurance system with 11 "federal crop insurance law" the regulation framework, crop insurance by state-owned federal crop insurance company management, policy-holder can be directly and federal crop insurance company signing insurance contract, also can sign a contract with designated by private commercial insurance company, federal crop insurance company to sign a contract with private insurers.A farmer in a crop year, for the same kind of crops with federal crop insurance company or private company signed a contract of insurance cover crops (must be within the scope of the policy provisions crops), the total insurance co., LTD.Insurance project involves food, fruits, tobacco and sugar crops, nearly 30 kinds of crops and agricultural products, insurance projects are independent of each other, have their own laws.Before the deadline of ginseng application must be in the insurance sales provided in writing to the crop insurance company and apply for your organization, and in which the time before applying any other application, existing application or the insurance contract.Applicants can be in within the prescribed scope of the insurance statistics to choose the insurance amount or coverage level and price.If federal crop insurance company think risk is too big, but to refuse or terminate the application.Comply with federal crop insurance company format and submit application, once deemed to be valid as accepted.Application, insurance policies, cover crops, appendix, such as insurance statistics at the county level of the insurance contract.Farmers could be attained only comply with the terms of the contract, compensation for damage.At the crop insurance if you have the following violations: violation of federal or state law provisions on cultivation, cultivation, breeding, harvest or stored in his luggage the prohibited item.In a highly erosion, pollution, land for agricultural production;Production of agricultural products in the marsh。

This year's crop insurance contract is void, and for four years after that cancel the qualification of appraisal of insurance contract.At the same time, the bill also stipulates that the farmers due to improper mistakenly firm statement from the federal insurance company purchase policy, not the resulting responsibility, don't have to pay additional insurance premium, and shall have the right to demand to compensate for failing to attend insurance of crop loss.21 (1) the crop insurance reform act of 1994 the current crop insurance law as the United States, is formed on the basis of summarizing the previous legislation practice, is a more mature crop insurance laws, also form the basis of the current insurance system.(1) the catastrophe risk insurance mainly drought, flood, fire, hail, such as the loss caused by force majeure of natural disasters, through the ministry of agriculture local offices or agencies to obtain private insurance company.50% of the average production guarantee production for the producer.If the actual output is lower than the guarantee, according to this kind of crops to the market to compensate 60% of the expected price (1999 and subsequent years crops, according to 55% of the expected market price for compensation).Each crop just pay fee $50 each county.An operation of a variety of crops in the county, the highest pay $200 in management fees, many county business to a maximum of 600 dollars.The last two years of total income is less than $20000 producers, can also be exempt from fees.The management fee used to subsidise the government in terms of crop insurance operating expenses, insurance premium subsidies by the government.Producers need in insurance sales before the deadline of application for catastrophe risk insurance, fill in the report of cultivated area, and provide production record history to determine production guarantee;Report production after harvest, immediately inform the insurance company in case of loss, cause and provide the amount of loss and damage.In addition, the law, should cover crops, such as the insurance of the insurance, cancel its price support for the federal government, adjust the service production and agricultural subsidies, such as credit and public reserve funds.

(2) additional risk insurance catastrophe risk insurance only provides a minimum level of risk guarantee, producers can add buy more planted crop insurance policy, a higher degree of risk guarantee.The discretion of the premium by the security level, crop types and vary in region.Insurance level between 50-65%, according to 100% of the expected market price for compensation, producers need to pay $50 each crop management and part of the insurance premium, partially government subsidies, subsidies for part of the insurance premium is 50% of the insurance level according to the market price of 60% expected crop insurance premium of pay.Insurance level is 65%, according to the market price of 100% expected to pay an additional insurance, producers must pay $10 for management and part of the insurance premium, partially government subsidies, subsidies amount is equal to the level of insurance of 50% shall be carried out in accordance with the market price of 75% expected crop insurance premium of pay.Beyond the additional insurance catastrophe risk insurance agency sales only through private insurance company.(3) many disasters crop insurance risk, mainly for food is related to the weather or other force majeure disasters loss insurance, to producers because of low yield, poor, prevent, delay or for compensation of the costs of the farmed again.Provide 65% or 75% production actual average insurance products, according to the expected market price of the 55-100% to compensate.Government provides four kinds of subsidies to encourage private insurance companies, and the participation of farmers, including: insurance premium subsidies, subsidies reinsurance and excess loss and private insurance company for insurance fees refunded.Purchase guarantee production of 65% or more than 75% of the crop insurance risk, do not need to buy separate agricultural catastrophe risk insurance, it has been involved in many disasters crop risk insurance.

(3) regional risk project risk project is a county average yields as collateral production benchmark, if county actual output is lower than the guarantee, to insure every producer can get compensation, the output of a single farm.Guarantee production in the county is expected between 65-90% of production, the insured value up to the county 150% of the expected returns, accounted according to the below guarantee production decline rate.Producers can。

Through the agency to buy private insurance company regional risk policy of the project, but not all of the state and county to provide the business, and cover crops is confined to barley, oats, 7 kinds of crops such as cotton.Enjoy the federal subsidies from the government, regional risk project does not need to provide production record history, but its main drawback is that not for a single producer.(4) the insurance benefits in accordance with the regulations, is not only catastrophe risk insurance covering dozens of crops can also obtain the safeguard of the insurance benefits program.Producers must report to the ministry of agriculture of local agencies crop acreage and production history.If a region in accordance with the conditions of insurance benefits project all producers year average yields of less than 65% of the normal year, individual losses in excess of 50% of the average output producers will receive the compensation of the insurance benefits program, by the federal crop insurance company shall compensate 60% of the market price.According to the project, almost all of the crops can be covered by crop insurance.(5) to prevent the abuse of insurance in order to prevent a few producers abuse crop insurance program, crop insurance law to be set as follows: the producer must report their crops planting area and yield, not only as a precondition to crop insurance, and as for the insurance benefits project qualification;Require all producers must provide their social insurance account, so that the agent or actuaries can pass these number query, analysis, producers of business performance;If producers deliberately benefit from its not qualifying for the project, will be fined.Federal crop insurance company and insurance experts shall establish a comprehensive training program to guide the insurance from personnel of course of how to distinguish whether producers abuse crop insurance program.3. The United States the characteristics of the agricultural insurance mode as the reform of the American crop insurance act and the evolution of agricultural insurance development, the agricultural insurance mode has the following characteristics: crop insurance become the main means of agricultural disaster aid, avoid the repeated compensation, reduce government spending and financial burden;Crop insurance covers almost all crops, and combining insurance of commercial insurance and policy.The low level of policy-related insurance guarantee, at the same time by the commercial insurance company to provide higher levels of insurance, extra government subsidies of premium.On the other hand, the U.S. federal crop insurance company regulation, for crop production, farmers holding 25%, 75% compensation.Such a way that is inspired producers continue to strengthen management, after insurance at the same time, further reduce the fiscal expenditure.