Huai'an City as a national agricultural insurance in the province of Jiangsu and the first to run the city, has been 4 years. In recent years the practice of agricultural insurance has initially produced some positive effects, such as conducive to the stability of agricultural production will help farmers to increase the capacity of disaster relief, in favor of building a new socialist countryside is conducive to the commercial interests of the insurance companies to maintain. At the same time, some successful practices in the face at the same time and found that some of the impact on the sustainable development of agricultural insurance, in the light of actual author of these issues for a brief discussion.
The implementation of the principle of compulsory appropriately
China's agricultural insurance now is to implement the principle of voluntary participation, but in practice, many from the local agricultural insurance and Pratt & Whitney's "law of large numbers", the government's administrative role, has been on rice, wheat and other major Project and a half to take a mandatory approach. And the higher number of government documents, on the one hand, emphasized the voluntary insurance, and insurance requirements at the same time, the rate must reach a certain percentage of the conflict, but also the grass-roots support for the Government's suit. As a result of inconsistent policies and practices, which has led to conflicts between a small number of cadres production, and increased the difficulty of this task. The principle of voluntary insurance is the biggest drawbacks of the adverse selection problem, farmers have the right to choose easy to hit the insurance field, and to choose the sum insured higher level of insurance, after the disaster will be 66.7 times the premiums paid by the insured amount of compensation ( 3 yuan per mu, for example to pay premiums, receive 200 yuan of the sum insured). This is the agricultural insurance organizer did not want to see the phenomenon, but under the existing policy and difficult to eradicate. Huai'an City, county has a large grain last year, the disaster-prone rice fields to choose the insurance premium, the premium paid over 4000 yuan, has been more than 20 million in disaster compensation. Under the prevailing policy of this inevitable Huai in the phenomenon of moral hazard is not uncommon, but with a difference in degree.
In the future could take appropriate enforcement policy? On the one hand, a few of the important bearing on people's livelihood security of agricultural items, such as rice, wheat, and so on, the practice of compulsory insurance, and other agricultural capital projects, from farmers to decide whether or not insured. On the other hand, to determine a level of insurance coverage a mandatory uniform, higher than the grade of this part of the insured farmers on a voluntary basis. Some foreign agricultural insurance more successful countries, such as the United States, Japan, France, and so on, are appropriate to implement the principle of mandatory. If we can do for our country to improve the international competitiveness of agriculture and ensure food security, agricultural insurance in an effective solution to the adverse selection and moral hazard problems, agricultural insurance to safeguard the interests of all the main operator plays an important role. Now, more and more farmers realize that the agricultural insurance benefits of farmers willing to accept and which to implement the principle of compulsory appropriately possible.
Solve the agricultural insurance premium collection of difficult issues
Huai'an agricultural insurance from the pilot to comprehensively implement the years, is the most difficult to collect premiums farmers. Due to the current voluntary insurance principles of the farmers, they can participate in the subjective can not, objectively speaking, but by the reunification of the village's insurance requirements, some subjective and do not want to have the participation of farmers, to pay premiums on time delay or even negative simply do not pay .
The solution of this problem, to consider whether two ways: first by the Government. This year the country to raise the proportion of premium subsidies, farmers need to pay premiums of 30%. Jiangsu in 2007 the sown area of wheat and rice 7095.7 million, from farmers to pay the minimum level of premium calculation of 3 yuan per mu, only the province more than 200,000,000 yuan, the Government has put 30% premium to afford one should have no problem with ; Second, the integration of agriculture with funds from the agriculture funds are listed (or clear them as a farmer's insurance premium payable) to resolve. At present, the farmers of the country's food subsidies for each mu of farmland, improved comprehensive agricultural subsidies and funds for supporting agriculture subsidies has been more than 100 yuan, while farmers should pay the premium for each mu (rice and wheat) less than the 1 / 10 , A very small proportion. State Department "on the reform and development of the insurance industry views on a number of" clear "to the agricultural insurance as a way of supporting agriculture innovation, support the protection of agriculture into the system." Such a solution has been to provide the basis for the policy. Moreover, the implementation of appropriate principles of compulsory insurance, agricultural insurance coverage to all the farmers, the premium funds for supporting agriculture in the integration after the reunification of the charge should be inevitable. This in two ways, should be unified in order to insure the basic level, which is higher than the basic choice of premium grade, by the farmers themselves. If so, will greatly reduce the operating costs of agricultural insurance and the difficulty of the work.
P & I from the development of science standards and the amount of security standards
P & I from the science standards is a prerequisite for the existence of agricultural insurance. At present, China's agriculture is still scattered small-scale production, the disaster occurred, connected with the plot, as well as between the block with a piece of land, the extent of the disaster may be different. If compensation from the standard set too low, man-made survey will be an increase of the cost of damage; compensation from the standard too high, farmers will be compensated as a result of chance is too small to lose the enthusiasm of insurance, agricultural insurance difficult. P & I from the scientific standards should be able to reflect the "appropriate protection, low-premium" should be a small disaster deductible, in compensation for disaster, the disaster compensation.
By the same token, the right to develop or not the standard amount of insurance cover is the key to the success or failure of agricultural insurance. At present, China's grain yield was not high. Huai'an to wheat, for example, when the harvest of 800 jin per mu or so, more or less net income per mu is more than 300 yuan. It is therefore essential that the sum insured for less than the standard for properly, otherwise it will be difficult to avoid the occurrence of speculation. Agricultural insurance is not the purpose of the high amount of insurance to increase their income, but in order to reduce the loss of the affected farmers, stable agricultural production.
The establishment of agricultural funds and the risk of catastrophe reinsurance system
Huai'an from the start of the three grains, two types of rice, from pilot to comprehensively implement the 3 years, a total of peasants from? U premiums and the central, provincial, county (district) government financial subsidies for a total of 44,250,000 yuan, More than 30 million farmers to pay 29,510,000 yuan, excluding the cost of management, the accumulation of the development of agriculture insurance Fund 11,000,000 yuan can be said to be break even after a slight savings. At the same time, the provincial government in accordance with the requirements of the Huai have begun to set up provincial, municipal, county (district) three levels of government-funded financial city and county (district) catastrophic risk reserve, but not the actual amount, it is difficult to resist the destruction of a major disaster .
On this issue, whether in the light of premium subsidies, including the establishment of the central government subsidies and other catastrophic risk fund system and re-insurance system. State revenue has increased year by year, in the first half of this year's 33.3 percent growth in revenue, the fiscal surplus has nearly as much as 1,200,000,000,000 yuan; steady growth in the economy, the state's agricultural support increased continuously, and then follow-up of the agricultural insurance needs support In the country's economic power should not be a problem.
Clearly part of the premium savings tax
Policy-oriented agricultural insurance is not commercial, then it's only the premium savings as a Development Fund to implement a rolling accumulation for a large disaster payment. Huaian Rice county in 2007 suffered serious floods, when the payment is not only used up 3-year accumulation, and more than 190 million in cost overruns. As a result, agricultural insurance premiums should not tax savings that year. But now the absence of clearly defined, the tax authorities still want to impose on commercial insurance, insurance companies and government due to the agricultural insurance were not paid, the two sides approach the more embarrassing. This situation go on a long-term, the conflict will inevitably come to the surface. As a result, the premium savings for that year of the implementation of fund management, tax and other issues, the state should be on agricultural insurance legislation to give clear, in order to promote the sustainable development of agricultural insurance.
14 Oct 2008
2,700,000,000 U.S. dollars of the total liabilities of Japan and Japan life insurance insolvency
0, 10, Japan and Japan life insurance company (hereinafter referred to as "big and life") to the Tokyo District Court filed for bankruptcy protection, becoming the financial crisis in Japan in the first bankruptcy of financial institutions.
Daiwa life notice that the company will be Oct. 11 -15, in Tokyo, Japan, Osaka, Nagoya, Sendai, Hiroshima, Fukuoka, the venue of the six, namely that investors will be held, the company will start insolvency proceedings, the company status quo As well as forecasts for the next note.
Daiwa life of the closure of news, the Japanese Nikkei stock market had plunged 11 percent. Daiwa life in the Tokyo conference held and forced to start insolvency proceedings, is due to the impact of the crisis by the time the United States, the value of securities held by the company to shrink, resulting in a loss of the expansion, as of the end of the third quarter of 2008, total debt has been as high as 2695 Billion yen (about 27 billion U.S. dollars).
The Reuters report said, and life insurance has been actively seeking the return on investment to make up for high operating costs in its portfolio, placed in hedge funds and real estate investment trust (REIT), and other alternative asset ratio is relatively high.
Daiwa life that so far this year, the company has to make up for operating costs and reduce financial losses to take positive measures, including seeking strategic investors, but ultimately failed. However, the global financial market turmoil intensified, the stock market decline, credit crunch and a series of problems the company's investment in securities such as a sharp drop in asset management business, with the result that since 2008 a net loss of 110 billion yen in liabilities, more than 11,490,000,000 yen .
At the same time, and life, said its core business - life insurance - to maintain steady growth, in order to protect the interests of policyholders, the company needed "as soon as possible to find the best way", that is, filed for bankruptcy protection. Japanese officials and market participants also said that the pursuit of a big investment in high-risk and life, and atypical of the Japanese insurance industry, does not mean that other financial institutions will follow its step-by-step.
However, history always repeats amazing.
"It is because Licha Sun in the 1990s, a large number of Japanese life insurance companies into the liquidity trap era, high-interest rate policy to make these companies very difficult, a number of small and medium-sized insurance companies close down one after another from Japan's life insurance industry has become big and not strong, This is a moment of Japan's life insurance industry from the brilliant turning point toward a recession. "Orient Securities analyst Wang Xiaogang said.
Japanese life insurance company closed down the last incident took place in 2001. At that time, TokyoMutualLifeInsuranceCo. Filed for bankruptcy protection, debt amounted to 980,000,000,000 yen; KyoeiLifeInsuranceCo. In 2000, filed for bankruptcy for the post-war Japan's largest companies, the debt is as high as 4.5 trillion yen.
Previous financial crisis, a number of signs after the collapse of the company will be involved in more small and medium-sized companies, even large and medium-sized companies. Oct. 10, Prudential Financial Group has become a quarterly profit warning issued by major insurance companies.
For life insurance companies show a profit warning after another reason, one analyst said that life insurance companies in the mortgage securities and the stock market, bond market, such as increasing the loss of their annuity from the original business was handling fee income as a result of stock market operations The loss dropped, resulting in the life insurance company stock prices and even insurance shares at a price of panic, the need to refinance in order to maintain credit ratings.
The current financial crisis is still in the middle of the future will also have a number of financial institutions into a vortex of the crisis, Wang Xiaogang analysis.
Daiwa life notice that the company will be Oct. 11 -15, in Tokyo, Japan, Osaka, Nagoya, Sendai, Hiroshima, Fukuoka, the venue of the six, namely that investors will be held, the company will start insolvency proceedings, the company status quo As well as forecasts for the next note.
Daiwa life of the closure of news, the Japanese Nikkei stock market had plunged 11 percent. Daiwa life in the Tokyo conference held and forced to start insolvency proceedings, is due to the impact of the crisis by the time the United States, the value of securities held by the company to shrink, resulting in a loss of the expansion, as of the end of the third quarter of 2008, total debt has been as high as 2695 Billion yen (about 27 billion U.S. dollars).
The Reuters report said, and life insurance has been actively seeking the return on investment to make up for high operating costs in its portfolio, placed in hedge funds and real estate investment trust (REIT), and other alternative asset ratio is relatively high.
Daiwa life that so far this year, the company has to make up for operating costs and reduce financial losses to take positive measures, including seeking strategic investors, but ultimately failed. However, the global financial market turmoil intensified, the stock market decline, credit crunch and a series of problems the company's investment in securities such as a sharp drop in asset management business, with the result that since 2008 a net loss of 110 billion yen in liabilities, more than 11,490,000,000 yen .
At the same time, and life, said its core business - life insurance - to maintain steady growth, in order to protect the interests of policyholders, the company needed "as soon as possible to find the best way", that is, filed for bankruptcy protection. Japanese officials and market participants also said that the pursuit of a big investment in high-risk and life, and atypical of the Japanese insurance industry, does not mean that other financial institutions will follow its step-by-step.
However, history always repeats amazing.
"It is because Licha Sun in the 1990s, a large number of Japanese life insurance companies into the liquidity trap era, high-interest rate policy to make these companies very difficult, a number of small and medium-sized insurance companies close down one after another from Japan's life insurance industry has become big and not strong, This is a moment of Japan's life insurance industry from the brilliant turning point toward a recession. "Orient Securities analyst Wang Xiaogang said.
Japanese life insurance company closed down the last incident took place in 2001. At that time, TokyoMutualLifeInsuranceCo. Filed for bankruptcy protection, debt amounted to 980,000,000,000 yen; KyoeiLifeInsuranceCo. In 2000, filed for bankruptcy for the post-war Japan's largest companies, the debt is as high as 4.5 trillion yen.
Previous financial crisis, a number of signs after the collapse of the company will be involved in more small and medium-sized companies, even large and medium-sized companies. Oct. 10, Prudential Financial Group has become a quarterly profit warning issued by major insurance companies.
For life insurance companies show a profit warning after another reason, one analyst said that life insurance companies in the mortgage securities and the stock market, bond market, such as increasing the loss of their annuity from the original business was handling fee income as a result of stock market operations The loss dropped, resulting in the life insurance company stock prices and even insurance shares at a price of panic, the need to refinance in order to maintain credit ratings.
The current financial crisis is still in the middle of the future will also have a number of financial institutions into a vortex of the crisis, Wang Xiaogang analysis.
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