Empirical Analysis of Factors Influencing Agricultural Insurance Coverage in China: A Supply and Demand Perspective

摘要

"The cold facts of the supply and demand situation" for agricultural insurance guarantees in China are the key reasons for the current low levels of protection available. Through an analysis of economic principles and domestic and overseas research, we posit the factors influencing the level of agricultural insurance in China from the perspective of both supply and demand. Regression analysis is carried out using Stata 13.0 software. The results indicate that government insurance subsidies, the level of social economic development, and farmers' production scale are the most significant factors with positive correlations affecting the supply and demand of agricultural insurance; moreover, the influence of the per capita net income of farmers is relatively significant and negatively correlated. Finally, from the perspective of supply and demand balance, insurance companies complying with the laws of the market should pursue the majority of the business to raise the level of agricultural insurance supply. The government should compensate for market failures and increase the premium subsidies. New agricultural business entities with large-scale production are the main source of the demand.