Quantitative study of rice, wheat, and maize insurance premium rates based on disaster loss data

Abstract

China is one of the countries with the most diverse natural disasters in the world, and the rapidly increasing demand for disaster risk protection for rice, wheat, and maize underscores the necessity of developing robust agricultural insurance to ensure food security. Based on county level disaster loss data for floods, droughts, and typhoons and planting area data for rice, wheat, and maize from 2015 to 2021, in this paper, a quantitative model for insurance premium rates is established and the insurance premium rates for rice, wheat, and maize in each county of China are determined. The main conclusions are as follows. 1) In rice producing regions, there are 118 counties with high rates, mainly concentrated in the eastern and south-western part of Hubei, central-northern part of Hunan, north-western part of Guizhou, and northern part of Jiangsu. Examples of areas with relatively high rates include the Zengdu District, Dawu County, and Jiangxia District in Hubei, with rates of 0.200, 0.198, and 0.196, respectively. 2) There are 54 counties with high rates in wheat producing regions, mainly concentrated in the central and north-western regions, including Suixian County and Laifeng County in Hubei and the Langya District in Anhui, with rates of 0.448, 0.412, and 0.428, respectively. 3) The counties with high rates for maize producing regions are mainly concentrated in the eastern part of Inner Mongolia, central and northern part of Shanxi, and southern part of Liaoning. Lintao County and the Pingchuan District in Gansu and Lanling County in Shandong having rates of 0.200, 0.190, and 0.197, respectively. The results reveal the occurrence of regional differences in agricultural insurance rates for rice, wheat, and maize in China, further enhancing the accuracy of insurance rates and providing a reference for the implementation of differentiated rates across regions nationwide. Our method has significance for further improving the framework and model of crop disaster risk management and disaster reduction work.

Graphical abstract

Keywords

agricultural insurance / rice / maize / wheat / premium rate determination / regional differences / disaster risk

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