Abstract:

Based on an accurate assessment of the risks of agricultural production, together with the information required for insurance policies, the reasonable design and evaluation of insurance products is an important guarantee for the sustainable development of China's agricultural insurance policies. According to historical meteorological data as well as rice growth stage and yield data, based on the construction of meteorological index for rice high temperature disaster insurance, combined with comprehensive regionalization and assessment of insurance risk in Jiangsu province, by setting different deductible amounts, insurance pure rates were set and corresponding products were designed. In addition, a comprehensive evaluation of the effectiveness of the application of the rice heat damage meteorological index insurance product has been achieved by using three methods: index evaluation, historical retrospective analysis, and analysis of typical heat damage events. The study found that under different deductible amounts for yield reduction rates, the determined pure insurance rates for rice high-temperature heat damage in various counties in Jiangsu province exhibited a distribution pattern of "high in the southwest and low in the northeast". The deductibles were ultimately determined to be 2.5% for low-risk, 2.5% for medium-risk and 7.5% for high-risk areas, after taking into account the incentives for farmers to participate and the level of coverage. The corresponding pure insurance rates were determined to be 5.09%, 5.27% and 5.26% respectively. The designation of this index insurance product was relatively reasonable from the point of view of the company's operational efficiency, loss compensation pressure, level of risk transfer and coverage of the farmer's production. In low-risk, medium-risk, and high-risk areas, the operational sustainability indices of insurance companies were 14%, 37%, and 76%, respectively, while the stability indices of farmer production security were 6%, 9%, and 21%, respectively, and the average compensation rates for high-temperature heat damage events were 111%, 122% and 303%, respectively. In typical high-temperature heat damage years, the average compensation amount in Jiangsu province exceeded 1800 yuan·ha⁻¹, and the number of compensation counties accounted for more than 50%. The results of this study may serve as references for the evaluation of the operational characteristics of meteorological index insurance products, as well as for the adjustment of insurance product design schemes, and the promotion and implementation of insurance products. 

Key words: Rice, High temperature disaster, Index insurance, Product design, Effect evaluation