Empirical Analysis on Farmers Agriculture Insurance Purchasing. Intention of Hebei Province 1

Transcription

1 Emprcal Analyss on Farmers Agrculture Insurance Purchasng Intenton of Hebe Provnce 1 Wenl Feng,Yue Bo,Fang Lu (Bankng School, Hebe Unversty of Economcs and Busness) (Shjazhuang,Hebe Provnce, ) Abstract:In order to study the restrctng factors affectng agrculture nsurance coverage, we carred out on-ste vst and questonnare survey on the farmers agrculture nsurance purchase ntenton of Hebe Provnce. On ths bass, we used Logstc regresson analyss method to extract the man factors nfluencng the farmers purchase ntentons, and put forward the polcy recommendatons to mprove the farmers' nsurance purchase ntenton accordng to the emprcal results. Key words:agrculture nsurance; nsurance purchasng ntenton; Logstc regresson 1. Introducton Hebe s a large agrcultural provnce, one of the most mportant major gran-producng provnces, respondng the great task of vegetable basket n Bejng and Tanjn area. At the same tme, Hebe, however, s a provnce that serously suffers agrcultural dsaster. Snce the plots of polcy-orented agrculture nsurance, the agrculture nsurance n Hebe provnce has had a flourshng development, wth the premum ncome growth year after year, nsurance subsdes expandng steadly, and agrculture nsurance busness operated stably. By the tme of December 31 st 2012, agrculture nsurance of Hebe provnce has had a premum ncome of bllon Yuan, ncreased by 69.11%, makng tself to be the second largest category of property nsurance market, and t also has had a clam payment of 587 mllon Yuan, ncreased by %, whch provde a money guarantee on post-dsaster recovery and reconstructon of agrcultural producton. However, lke most other provnces, agrculture nsurance coverage n Hebe provnce s not qute deal at present, and the crop nsurance partcpaton rates are rather low except the corn and wheat nsurance rates. So, on the bass of questonnare survey, ths paper used a Logstc regresson model to extract the man factors of nfluencng farmers nsurance purchase ntenton, and put forward some polcy recommendatons to mprove the farmers' nsurance purchase ntenton [Fund Project] 2012 Natonal Socal Scence Fund (Project Number: 12BJY166) [Athor Introducton] Feng Wenl (1974-), female, from Pnglang of Gansu Provnce, Ph. D, Professor,work n the Bankng School of Hebe Unversty of Economcs and Busness. Bo Yue (1988-), female, from Tangshan of Hebe Provnce, graduate student of the Bankng School of Hebe Unversty of Economcs and Busness. Lu Fang (1989-), female, from Tanjn, graduate student of the Bankng School of Hebe Unversty of Economcs and Busness. The authors thank the help from the 2010 level students of the Bankng School of Hebe Unversty of Economcs and Busness. 1

2 accordng to the emprcal analyss. 2.Data Sources and Statstcal Descrpton 2.1 Data Sources The survey was carred out n July 2012 and the ntervewees are the farmers n Hebe provnce. In order to mprove the authentcty of ths nvestgaton and get a more comprehensve understandng of farmers purchase ntenton n Hebe Provnce, ths survey s carred out throughout all the 11 prefecture-level ctes, totally 41 admnstratve vllages n Hebe. Durng the survey, a total of 210 questonnares were dstrbuted randomly, recyclng 193 vald questonnares, reachng 92% effectve percentage. All the nvestgators are students studyng n Bankng School of Hebe Unversty of Economcs and Busness. Before the nvestgaton, the nvestgators had been traned about the knowledge of agrculture nsurance. All the questonnares are fnshed ndependently n the gude of nvestgators, whch can not only ensure the questonnare can be recycled n tme, but also mprove the effectveness of the questonnare content. 2.2 Statstcal Descrpton on Factors Influencng Farmers Insurance Purchase Intenton Ths research nvestgates the farmers' nsurance purchase ntenton from the followng eght aspects: gender, age, famly's permanent populaton, educaton degree, ncome sources and ncome level, dsasters that farmers worry most, the cognton of agrculture nsurance, nsure and clam experences, and nsurance type expectatons Gender, age and famly's permanent populaton (1) Gender. Generally speakng, people wth dfferent gender have dfferent appette for rsk. But from the result of the survey, ths characterstc s not obvous on the queston of whether the farmers would nsure agrculture nsurance: there are 15.0% of the male farmers and 15.15% of the female farmers havng bought the agrculture nsurance purchase ntenton. Perhaps the reason s that famly members jontly make the decson on agrculture nsurance. So gender s not the sgnfcant factor of nfluencng farmers nsurance purchase ntenton. (2) Age. The survey shows that farmers under the age of 30 and of 51 to 60 years old have a much hgher agrculture nsurance purchsng rate, up to 25.9% and 27.3% respectvely; that farmers of 31 to 40 years old and of 41 to 50 years old have a much lower agrculture nsurance purchsng rate, down to 14.7% and 11.8% respectvely; and that farmers over 61 years old have a zero agrculture nsurance purchsng rate (shown n table 1). The probable reason s that farmers under the age of 30 are easy to accept the new thng such as the agrculture nsurance; farmers of 51 to 60 are older and have a lower rsk appette, expect to receve stable agrcultural produce ncome and tend to buy agrculture nsurance; most of the farmers of 31 to 40 and 41 to 50 years old are mgrant workers and have lower nsurance wllngness; farmers over 61 years old have weak nsurance conscousness, and most of them are no longer engaged n agrcultural producton, so they have the lowest nsurance desrng rate. Table 1 Agrculture nsurance ntenton of dfferent ages Under30 31to40 41to50 51to60 Over61 Number of ntervewee Number of nsured Insurance purchsng rate 25.9% 14.7% 11.8% 27.3% 0.00% (3) Famly's permanent populaton. From the survey result, the more permanent members 2

3 famly have, the less nsurance wllngness farmers have: famles under 3 members have an agrculture nsurance purchsng rate of 28%, famles of 3 to 5 members have an agrculture nsurance purchsng rate of 13.5%, and famles of over 5 members have an agrculture nsurance purchsng rate of 12.2%. The probable reason s that the more permanent members famly have, the more powerful ablty of resstng rsk the farmers have, and the more reluctant to buy agrculture nsurance Educaton degree It s generally beleved that the hgher educaton degree s, the easer to understand and accept the nsurance. The survey data confrms ths pont. In the numbers of ntervewee, farmers of prmary educaton have the lowest nsurance purchsng rate only 9.4%; more than half of the ntervewees are farmers of junor educaton, but the nsurance purchsng rate s only 12.8%; farmers of above hgh school educaton have the nsurance purchsng rate of around 20%, sgnfcantly hgher than whch of the junor and below junor educaton farmers (shown n table 2). In general, farmers educaton degree n Hebe provnce s not hgh, whch, to a certan extent, affects the agrculture nsurance purchsng rates. Table 2 Agrculture nsurance ntenton of dfferent educaton degree Below Junor Undergraduate Junor Senor prmary college college Number of ntervewee Number of nsured Insurance purchsng rate 9.4% 12.8% 25.9% 25.0% 19.0% Income sources and ncome level (1) Income sources. Farmers ncome sources n Hebe provnce are tendng to be dversfcaton at present. Apart from agrcultural producton, a qute number of farmers go out to work or engage n self-employed busnesses to earn money. In order to facltate the analyss, we dvde the ncome sources nto three category optons: agrcultural ncome, non-agrcultural ncome and mxed ncome. As table 3 shows, farmers whose ncome source s agrcultural ncome have the hghest nsurance purchsng rate of 25%; farmers whose ncome source s non-agrcultural ncome have the lowest nsurance purchsng rate of only 6.5%; farmers whose ncome source s mxed ncome have a nsurance purchsng rate of 15.3%. Table 3 Agrculture nsurance ntenton of dfferent ncome sources agrcultural ncome mxed ncome non-agrcultural ncome Number of ntervewee Number of nsured Insurance purchsng rate 25% 15.2% 6.5% Note: crops, forestry, anmal husbandry and aquaculture are attrbuted to agrculture ncome ; gong out for work, government subsdes, self-employed and others are attrbuted to "non-agrcultural ncome"; havng both the agrcultural ncome and non-agrcultural ncome are treated as "mxed ncome". (2) Income level. Generally speakng, the hgher ncome farmers have, the more lkely to buy nsurance. However, the survey data shows the opposte result, namely, farmers wth lower 3

4 ncome have a hgher nsurance purchsng rate, whle farmers wth hgher ncome have a lower nsurance purchsng rate: Farmers wth annual ncome of less than 6000 Yuan have an nsurance purchsng rate of 27.8%; Farmers wth annual ncome of 6000 to Yuan have an nsurance purchsng rate of 21.8%; Farmers wth annual ncome of more than Yuan only have an nsurance purchsng rate of 9.17%. Ths s probably because hgh ncome farmers have a stronger ablty to resst rsk, and coverage level of polcy agrculture nsurance s too low to attract them to purchase Dsasters that farmers worry most Through the survey data, we can fnd out what farmers worry most are crop pests and dseases (57%), halstorm (38.3%), drought (36.8%) and flood (35.8%)(Shown n table 4). At present, the nsurance lablty of the subsded crop nsurance n Hebe provnce s descrbed as the nsured crop plantng cost losses caused by human rresstble natural dsasters, ncludng the wndstorm, hal, ranstorm, flood, water loggng and freeze". But crop pests, dseases and drought that farmers worry most are not ncluded n the nsurance labltes, whch leads to the low enthusasm of farmers purchasng agrculture nsurance. Table 4 Dsasters that the farmers worry most Number rato drought % Flood % wndstorm % halstorm % water loggng % freeze % dseases % pests % fre % lvestock and poultry dsease % others % The cognton of agrculture nsurance Four questons n the survey form can reflect the cognton of agrculture nsurance: "whether hearng about the agrculture nsurance or not, ways to hear about agrculture nsurance, post-dsaster assst channel, and the mportance of agrculture nsurance". (1) Whether hearng about the agrculture nsurance or not. The survey shows, there are 114 farmers who have heard about agrculture nsurance before ths nvestgaton, accountng for 59.1% of the ntervewees. Among them, those who have bought agrculture nsurance accounts for 25.4%. The number of not heard about agrculture nsurance s 79, and surely they never take out an nsurance. (2) Ways to hear about agrculture nsurance. Among the ones who have heard about agrculture nsurance, "by rado and televson", "by relatves and frends" and "by government propaganda" respectvely accounts for 59.6%, 51.8% and 33.3%. In addton, 29 farmers say that one of the ways to hear about agrculture nsurance s "nsurance company s promoton", and 6 farmers treat "nsurance company s promoton" as the only way to hear about agrculture nsurance. What s notable s that none of these 6 farmers are nsured, and only 5 of the other 23 farmers have 4

5 purchased the agrculture nsurance (Shown n table 5). What amazng us s that, as the demand sde of agrculture nsurance, farmers get agrculture nsurance nformaton not through the agrculture nsurance supply sde the nsurance companes, whch ntegrates that the nsurance companes do not make enough publcty of agrculture nsurance, or the propaganda effect s not obvous. Table 5 Ways to hear about agrculture nsurance Number Rato rado and televson % relatves and frends % government propaganda % out to work % educaton % nsurance company s promoton % others % (3) Post-dsaster assst channel. When asked about the queston " the man economc assstant channel when facng natural dsasters and man-made msfortunes, 73.1% of the farmers choose "ther own", 64.2% choose "frends", 30.6% choose "government", and 13% choose "nsurance companes", n whch only 4 farmers treat nsurance company as the only channel to obtan fnancal ad, accounted for 2.1% of the total number of ntervewees. It shows that the ntervewed farmers have a low acceptant of nsurance, and they do not regard nsurance as an mportant means to manage agrcultural rsk. (4) The mportance of agrculture nsurance. Accordng to the survey results, the number of farmers who thnk agrculture nsurance s "very mportant", "mportant" and "general" respectvely accounts for 24.4%, 38.9% and 32.7%, and the number of farmers who thnk that agrculture nsurance s "not mportant" only accounts for 4%. Ths shows that most farmers have realzed the mportance of agrculture nsurance, but yet have not purchased. So what are the reasons to prevent those who consder agrculture nsurance mportant from nsurng? And that s exactly the focus of ths paper Insure experences Farmers' nsure experences can be reflected by the followng three questons: "agrculture nsurance purchase patterns", "reasons for purchase" and "reasons for not purchase". (1) Purchase patterns. The survey data shows the number of farmers who buy nsurance though "the vllage unfed purchase" accounts for 72.4% of the total, though "the nsurance company promoton" accounts for 17.2%, though "frends and relatves" accounts for 13.8%, though "nsurance company ste publcty" accounts for 10.3%, and though "gong to the nsurance company" accounts for 3.4%. Obvously, the man way to purchase the agrculture nsurance s though the vllage unfed purchase,whch has some relatonshp wth the nsurance company prncple of "whole vllage nsurance". In practcal, n order to reduce moral rsk and costs, nsurance companes often regard the whole vllage as an nsured unt, and do not nsure only one or a few households alone. For nsurance companes, ths type of nsurance purchase pattern s not only better for expandng the busness sales, preventng moral rsks and reducng operatng costs, but also lowers nsurance rates.howerver, ths type of nsurance purchase pattern excludes the farmers who are wllng to buy nsurance but the vllage doesn t organze the unfed purchase. 5

6 (2) Reasons for purchase. Among the nsured farmers, the number of choosng "to understand the agrculture nsurance s an effectve compensaton method" and "to provde farmers wth the natonal premum subsdy" as "purchase reason" respectvely accounts for 55.2% and 41.4% (Shown n table 6). Obvously, t s more and more ratonal for farmers to take out agrculture nsurance, and the government provdng premum subsdes s not the most mportant and the only reason for farmers to buy agrculture nsurance. Table 6 Reasons for purchase agrculture nsurance nsure number rato vllage cadre s moblzaton % government provdes scrappng subsdes % nsurance salesman s moblzaton % purchase when others buy % see others gettng beneft from nsurance % agrculture nsurance can effectvely compensate the losses % (3) Reasons for not purchase. Among the unnsured households, farmers mostly choose "people around do not buy" as the reason for not purchase agrculture nsurance, occuped 47%. Obvously, n the face of whether to nsure, farmers shows "herdng behavor". To a certan extent, farmers blndly follow psychology reduces the nsurance rate. There are 40.2% and 40.9% farmers attrbute the reason for not purchase to "dsbeleve nsurance companes" and complex clam settlement procedures ", whch ndcates that farmers have a low recognton on nsurance companes. In addton, there are 29.3% of the farmers who never nsure for the reason of less lkely to gan loss, whch ndcates that these farmers have a poor awareness of encounterng rsk, and to some extent ths also affects the nsurance purchasng rate (Shown n table 7). Table 7 Reasons for not purchase agrculture nsurance Opton statements rato not afford the premum 12.20% low compensaton 37.80% complex clam settlement procedures 40.90% dsbeleve nsurance companes 40.20% Insurance s unlucky 4.30% people around do not buy 47% Do not know where to buy 17.70% less lkely to gan loss 29.30% state's relef 3.00% others 9.10% Insurance type expectatons Just as Table 8 shows, the ntervewed farmers nsurance demands are concentrated n the corn (73.6%), fattenng pgs (25.4%), reproducng sows (21.2%) and others (32.1%). Among them, farmers have the most demand of corn nsurance. It s because that corn accounts for a large proporton of agrcultural structure n Hebe provnce. And perhaps t s also because of corn s greater probablty of sufferng agrcultural rsks and ts weaker ablty to resst agrcultural 6

7 dsasters. From our research, we fnd that farmers have a larger demand of fresh frut nsurance and aquaculture nsurance, whch have not been ncluded n the scope of polcy agrculture nsurance premum subsdes 2. Table 8 Demands of agrculture nsurance type Optons Rce Corn Fattenng pgs Reproducng sows Cow Others Rato 9.8% 73.6% 25.4% 21.2% 6.7% 32.1% Clam experences The survey data shows that there are 26 farmers of the 193 ntervewees havng been compensated by the nsurer. In these 26 households, 14 farmers have made renewal nsurance, accountng for 53.8%. The nsurance purchasng rate of those who have not obtaned any agrculture nsurance ndemnty s only 9%. Through the survey analyss, we can fnd that farmers who have receved the ndemnty are more wllng to make renewal, whch ndcates that they have already realzed the mportant role of agrculture nsurance. But t s worthwhle to note that nearly half of the farmers who have already receved the ndemnty do not make a renewal. Table 9 The nsure stuaton of farmers who have receved ndemnty Number of recevng ndemnty Number of not recevng ndemnty Number of ntervewee Number of nsured Insurance rate 53.8% 9.0% 3.Logstc Regresson Analyss on Farmers Insurance Purchase Intenton 3.1 Model Establshment In the practcal economc lfe, lots of phenomena can be dvded nto two possbltes or come down to two choces, namely bnary selecton. Usually Probt and Logstc regresson model are the two methods to analyze the bnary selecton. Snce the Logstc regresson model not only depends on hypothess of the sample s multvarate normal dstrbuton and covarance matrx equalty, but also makes regresson on metrc or non-metrc varables, we choose Logstc regresson as the method of emprcal analyss n ths paper. In ths model, we descrbe that whether farmers nsure or not as the explaned varable, n terms of y. y=1 says that farmers buy agrculture nsurance, and y=0 says farmers buy no agrculture nsurance. Name the probablty of farmers nsure as P, and the Logstc regresson between P and varables x 1, x 2,,x n s: Obvously, the probablty of no nsure s: exp( 0 X) 1 P n 1 exp( X ) 0 n 1 2 The questonnare s carred out n June 2012, when fattenng pg has not yet been ncluded n the Hebe polcy-orented agrculture nsurance. 7

8 by mathematcal transform: 1 1 P n 1 exp( X ) 0 1 n 0 1 ln[ P / (1 P)] X That s the general equaton of the Logstc regresson model. 3.2 Varable Declaraton Agrculture nsurance ntenton s nfluenced by many factors. Combned wth the above statstcal descrpton, the followng varables are used n Logstc regresson model: farmer's age, annual famly ncome, ncome sources, permanent famly populaton, educaton degree, the mportance degree of agrculture nsurance, premum wllng to pay for 1000 nsurance amount, and havng receved ndemnty or not. In order to mprove the model accuracy, when settng varables, the classfcaton varables are transformed nto dummy varables so that each dummy varable only represents the dfference between categores, but not the value of varable. See table 10 for the specfc assgnment of above varables. Table 10 Varable characterstcs Varables The name of varables Varables value Mean value dependent No 0 Whether to buy agrculture nsurance(y) varables Yes ndependent Under 30 1 varable Age(x 1 ) 30 to Above 50 3 Under 6000 Yuan 1 annual famly ncome(x 2 ) 6000to15000 Yuan Above Yuan 3 non-agrcultural ncome 1 and ncome sources (x 3 ) 2.01 mxed ncome 2 agrcultural ncome 3 Less than 3 1 permanent famly populaton(x 4 ) 3 to More than 5 3 Below prmary 1 Junor 2 educaton degree(x 5 ) Senor Junor college 4 Undergraduate college 5 Not mportant 1 the mportance degree of agrculture General 2 nsurance (x 6 ) Important Very mportant 4 8

9 premum wllng to pay for 1000 nsurance amount (x7) havng receved ndemnty or not(x 8 ) About 10yuan 1 About 20yuan 2 About 40yuan 3 About 60yuan 4 About 80yuan 5 About 100yuan 6 No 0 Yes Results Analyss In ths paper, we use software SPSS17.0, and adopt maxmum lkelhood estmaton (condton) seve method, that s, put above eght varables nto the regresson model equatons, test the sgnfcant of varables, elmnate the mnmum F value of the nsgnfcant varables, re-fttng regresson equaton, and test untl all varables n the equaton are bascally sgnfcant. select crtera α =0.05 and elmnate crtera α =0.10 excluson. the results are shown n table 11: age(x1), ncome sources(x3), educaton degree(x5) and whether receved ndemnty(x8)have a sgnfcant effect on farmers' partcpaton ntenton. 3 (1) Age. Analyss shows that the ntenton of 30 to 50 years old farmers s tmes as that of under 30 farmers, and the ntenton of over 50 years old farmers s tmes of that of under 30 farmers. Ths llustrates that the older farmers are, the more strong ntenton of agrculture nsurance farmers have. Ths corresponds wth the general understandng that "the older, the hgher degree of rsk averson". (2) Income sources. Analyss shows that farmers whose ncome source s agrcultural ncome have the hghest nsurance rate, tmes than that of non-agrcultural ncome, and farmers whose ncome source s mxed ncome have a tmes nsurance rate bgger than that of non-agrcultural ncome. Ths llustrates that the hgher proporton agrcultural ncome accounts for n total ncome, the more nsurance wllngness farmers have. (3) Educaton degree. Analyss shows that the ntenton of farmers n junor educaton degree s tmes as that of prmary, the ntenton of farmers n senor educaton degree s tmes as that of prmary, the ntenton of farmers n Junor college educaton degree s tmes as that of prmary, and the ntenton of farmers n Undergraduate college educaton degree s tmes as that of prmary. Apparently, the wllngness to nsure of farmers who have a senor or above senor educaton degree s much hgher than that of farmers who have a junor or below junor educaton degree. (4) Whether receved ndemnty. Ths factor s the most sgnfcant factor affectng farmers agrculture nsurance purchasng ntenton. The ntenton of farmers who have receved the agrculture nsurance ndemnty s tmes than that of farmers who have not receved any ndemnty. Ths llustrates that farmers who have receved the agrculture nsurance ndemnty have a more profound understandng of the agrculture nsurance, and they trust more n nsurance companes. So they have a greater probablty to nsure. 3 Some varables P value s more than 0.05, but not removed from the equaton, because the lkelhood rato test results make a conflct wth the above Walds test. The lkelhood rato test shall preval here, because t s an overall test whle Walds test tself s not so accurate. 9

10 (5) Others. annual famly ncome(x 2 ), permanent famly populaton(x 4 ), the mportance degree of agrculture nsurance(x 6 ) and premum wllng to pay for 1000 nsurance amount (x 7 ) are not ncluded n the fnal results, whch llustrates that the effects of these four factors on farmers' nsurance purchasng ntenton are not sgnfcant. Table 11 Bnary Logstc regresson analyss results of the factors affectng farmers agrculture nsurance ntenton 95% C.I. of EXP(B) factors B S.E, Wals df Sg. Exp (B) Lower lmt Upper lmt X X 1 (1) X 1 (2) X X 3 (1) X 3 (2) X X 5 (1) X 5 (2) X 5 (3) X 5 (4) X 8 (1) constant Polcy Recommendatons Syntheszng the results of statstcal and emprcal analyss, combnng wth the realty of the development of agrculture nsurance n Hebe provnce, ths paper puts forward the followng polcy recommendatons to mprove farmers' ntenton to nsure: (1)Rch Categores and Increase the Varety of Insurable Rsks Accordng to research, farmers have stronger ntentons to nsure corn, fattenng pgs and reproducng sows, besdes, they also have stronger demands on fruts and aquaculture, at the same tme, they are afrad of drought and pest dsasters. Therefore, on the bass of exstng nsure categores, some crops of wde acreage and lvestock of hgh breedng rato whch have greater mpact on farmers' ncome and natonal economc should be brought n the scope of agrculture nsurance subsdy. And drought, fres and crop pests and dseases that farmers concern about most should gradually be brought nto nsurable rsks, so as to mprove the attractveness and nsure rate of polcy-orented agrculture nsurance. (2)Strengthen the Publcty of Agrculture Insurance Accordng to the result that 40.9% of the farmers have not heard of agrculture nsurance, and the emprcal result that farmers of more than 30 years old and above senor educaton degree have stronger ntenton to nsure, we can draw the concluson that the publcty of agrculture nsurance should be strengthened to mprove agrculture nsurance rate. It s necessary to brng the government, nsurance companes, unverstes and meda nto full play, make full use of the Internet, televson, rado, newspapers, wall newspaper, moble phone, publcatons and other 10

11 nformaton carrers, and buld an agrculture nsurance propaganda system of mult-level, mult-form, mult-channel and mult-agent, wth the help of the market, venue and other varous nformaton transmsson places, by many ways of organzaton propaganda, typcal cases and demonstraton. Get the farmers a deeper understandng and acknowledge of polcy-orented agrculture nsurance, cultvate farmers conscousness of modern rsk preventon, mprove the ntatve, enthusasm and contnuty to nsure. Explore to establsh agrculture nsurance demonstraton countes, towns and vllages, perfectly playng the leadng role. Strengthen the publcty of typcal examples to let more farmers deeply realze the rsk protecton of the polcy agrculture nsurance, and enjoy ts benefts. (3)Improve the Clams Qualty of Insurance Companes The emprcal analyss results show that "have receved the agrculture nsurance ndemnty or not" s the most sgnfcant factors to affect the ntenton of agrculture nsurance. In ths regard, the nsurance company should put an end to the phenomenon of unwllng to compensate. Strve to solve the problems generally reflected by the farmers, such as dffculty to damage assessment and slow settlement of clam. Smplfy clams procedures, shorten clams tme and fully enhance clams qualty. When dsasters happen, nsurance companes should provde full and tmely compensaton for the affected farmers, strctly n accordance wth the contract of nsurance. The experence of recevng ndemnty can produce postve renforcement effect n nsured farmers and encourage them to make renewal nsurances. At the same tme, word-of-mouth publcty among farmers can affect the unnsured farmers to nsure actvely, and thus ncrease the nsurance purchasng rate. [References] [1]Wenl Feng. Research of Agrculture nsurance theory and Practce[M]. Bejng: Chna Agrcultural Press, 2008 [2]Xaoqun He. Modern statstcal analyss methods and applcaton[m]. Bejng: Renmn Unversty of Chna press,