Government Interventions in Agricultural Insurance

摘要

Agricultural insurance is normally undertaken as a market-based activity by private or state sector insurance companies, often with support measures from government. There is increased interest in risk management and insurance to promote agriculturalinvestment and access to credit, and to provide financial stability to farmers and other actors in the agri value chain. The various types of intervention which are made by goveniments to facilitate agricultural insurance are reviewed, based on the results of a recent international survey conducted by World Bank. Whilst premium subsidy is the most common intervention, other enabling measures are important, such as the legal and regulatory framework, reinsurance, technical and administrative assistance,and linkages to government extension services in agriculture, animal health or meteorology. The main constraints and opportunities for crop and livestock insurance in developing countries are considered, such as insurance product types, hazards, vulnerability, and rural institutions which can support organisation and distribution. Developing appropriate distribution channels, and linking insurance to measures which can increase agricultural productivity, such as credit, farm inputs and services, providean opportunity where insurance can add benefit to farmers. Insurance in isolation may attract little demand and may not be seen as a value proposition. Agricultural insurance is normally only affordable for exceptional events, and should not crowd out traditional risk coping at household or community levels, and can complement formal savings to manage frequent risk events. Agricultural insurance is complex from technical, organisational and financial standpoints, leading to many challenges for the insurance market and to decisions by government for appropriate intervention. This paper will consider international experiences in developing agricultural insurance, the governments' inter'entions and relate these to the rapid expansion of the Chinese agricultural insurance market.