As a risk compensation mechanism, agricultural insurance can reduce the loss caused by natural disasters to a certain extent, and relieve the economic pressure of the farmers. But due to the influence of subjective and objective factors, agricultural insurance in the actual operation still exist many problems and blocks its function of normal play.
   Existing problems
   (a) the lack of credit, such as false, concealed the existence of potentially fraudulent phenomenon. According to reflect, in the insurance sector survey claims are often found some insured deliberately expand the extent of losses, cheat, lie even manufacturing fake site and other problems, mainly concentrated in the crop and livestock insurance. If an insurance company in 2014 found 240 mu of a farmers insurance field. In the autumn report say the affected 170 acres and require insurance claims, but after the scene investigation, actual affected area of less than 100 acres to inflate more than 70 acres.
   (two) farmers' insurance awareness is not strong, the degree of recognition of insurance is low. The survey to understand, is subjective to some farmers exist fluky psychology, think the insurance spent is wasted money; objectively because prices of agricultural products already low premium expenditure, intangible added economic costs for farmers. Such as corn insured 280 yuan / mu, according to the yield of 1000 kg, the price of 1 yuan / kg basis, income of 1000 yuan, but the deduction of all cultivation cost, net income per acre only between 200 to 300 yuan if disaster get claims only 280 yuan, so the farmers think not resigned. Two is the degree of protection of agricultural insurance and the actual needs of farmers do not match, especially the protection of efficient agriculture is not strong, insurance is not rich enough, the way to simplify the insurance claims, the impact of the willingness of farmers.
   (three) the insurance policy is not perfect, the mechanism is not flexible, insurance institutions underwriting enthusiasm is not high. At present, China's agricultural insurance is a policy insurance, due to the lack of competition and reinsurance mechanism, to a certain extent, the impact of the income of insurance institutions, agricultural insurance should play a role. Such as 2015 an insurance agency, the agricultural insurance premium income of more than 4000 million yuan, because of the serious disaster claims paid more than 5700 million yuan, upside down more than 1700 million yuan. Agricultural production is subject to climatic conditions, accident more, in underwriting if large natural disasters, insurance institutions often claims at a loss, unable to make ends meet, if there is no corresponding reinsurance and state subsidies policy support, it is bound to affect the developing agricultural insurance actively.
   (four) the subject matter of the insurance over a broad area, lack of service capacity. Agricultural insurance is facing the vast rural areas, with a large area, Lu Tuyuan, the subject of dispersion and other characteristics. According to statistics, Dalian Zhuanghe area insurance subject involving 207 villages, 2506 Tun, more than 15 million farmers, because over a broad area, plus the lack of insurance practitioners, to cope with the insured farmers, take the case, exploration and settlement of claims. Although the place with the ADPL members, but due to the identity is not a substitute for formal insurance personnel to fulfill the duties, resulting in insurance does not reach the designated position, exploration and evaluation problems such as inaccurate, claims not full, compensation funds not timely, large farmers opinions and complaints.
   policy suggestion
   (1) to improve the agricultural insurance system and standardize the insurance market. With the continuous advance of China's agricultural modernization, the establishment of a sound insurance mechanism, according to the law to regulate the insurance market is an inevitable choice. First, the establishment of diversified insurance market. stay
   Focus on the development of policy oriented agricultural insurance, the introduction of commercial agricultural insurance, in order to adapt to and meet the growing needs of the vast rural market for insurance. Two is to establish agricultural reinsurance system mechanism, to ensure the health and sustainable development of agricultural insurance. Three is to regulate the management of insurance. To improve the insurance clauses and premium rates for the formulation of scientific and effective; to enhance the accuracy and timeliness of underwriting, claims service, to resolve conflicts and risks in the insurance services.
(two) to improve the insurance policy. One is to establish a national or local government insurance subsidy and compensation mechanism, the force majeure large area agricultural disaster and catastrophe insurance, state or government to provide free insurance subsidies of insurance institutions, to enhance insurance institutional capacity, improve the insurance agency underwriting the enthusiasm. Two is to give agricultural insurance preferential policies to reduce the operating costs of insurance institutions. Three is to increase the intensity of insurance subsidies for farmers to ease the production and life of farmers pressure, improve the ability to resist risks.
   (three) to accelerate the transformation of agricultural insurance services, to meet the needs of modern agriculture. The sightseeing agriculture, tourism agriculture, farm families, experience agriculture and agricultural modernization gradually replace the traditional agriculture and with a high degree of integration of the rural service industry, coupled with agricultural insurance also faces the adjustment of the integration of traditional agricultural insurance and property insurance, liability insurance, accident insurance products and consumption structure. These need insurance institutions as soon as possible the transformation of concepts and ideas, to adapt to the objective need of the development of modern agriculture. Meanwhile, it should also be pay attention to talent introduction and culture, improve the insurance practitioners of practical working ability and insurance service ability.
   (four) to adjust the direction of development, innovation and insurance. With the rapid development of agricultural products and emerging agricultural processes, as well as facilities, agriculture, ecological agriculture, urban garden flowers and other modern agriculture, the existing insurance lines obviously can not meet the demand. In this regard, insurance institutions should flow, timely adjustment of development strategy, developed and launched more insurance products to meet the needs of the rural insurance market.
   (five) to strengthen publicity, so that agricultural insurance for the majority of farmers. To make full use of television, newspapers, Internet, briefing, sports activities, etc. all loved by the masses in the form of, in-depth publicity, to launch a broad, told through the significance, clarifying the insurance terms, to stipulate the liability interest. As a result, the country to the agricultural insurance to support and participate in the agricultural insurance the safeguard of well-known.

(source: China Financial Network)