Proceedings of the 9th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention (RAC 2020)

Analysis on the Income Risk and Insurance Pricing of Peanut Planting Farmers in North China

Authors
Xiao Su, Chengyi Pu
Corresponding Author
Chengyi Pu
Available Online 12 April 2021.
DOI
https://doi.org/10.2991/aebmr.k.210409.033How to use a DOI?
Keywords
Meteorological hazard risk, Peanut income insurance, Premium rating, Copula method
Abstract
Agricultural production has been affected by natural disasters for a long time. In recent years, extreme meteorological disasters occur frequently in the context of global climate change, causing fluctuations in crop yields and prices, and posing serious threat to rural economic development. Shandong province is a great peanut province. Affected by natural risks such as meteorological disasters and consequent price risks, peanut production is faced with double threats of output and price. However, the current policy-based peanut insurance is difficult to fully disperse the risks and ensure the stability of peanut production. According to the analysis of peanut income risk and pricing mechanism of peanut income insurance, as well as the construction of Copula model based on data from 1991 to 2017, this paper calculates the premium rate of peanut income insurance in Shandong province and four cities. The results show that the pure premium rate is between 1.5% and 4.15% under the guarantee level of 70% to 90%. Compared with the current cost insurance with flat rate of 4%, the income insurance premium rate is generally lower, which can provide more comprehensive protection at lower cost under the same level of protection. This shows that it is feasible to carry out peanut income insurance in Shandong province, which is of great significance to disperse peanut production and operation risks, ensure stable income of planting farmers, promote the solution of problems concerning agriculture, rural areas and farmers, and promote the integrated development of urban and rural areas.
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Cite this article

TY  - CONF
AU  - Xiao Su
AU  - Chengyi Pu
PY  - 2021
DA  - 2021/04/12
TI  - Analysis on the Income Risk and Insurance Pricing of Peanut Planting Farmers in North China
BT  - Proceedings of the 9th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention (RAC 2020)
PB  - Atlantis Press
SP  - 212
EP  - 216
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210409.033
DO  - https://doi.org/10.2991/aebmr.k.210409.033
ID  - Su2021
ER  -