Case Study on the"Insurance+Futures"Model:Price Insurance for Pig Farming
The"insurance+futures"model represented a novel collaborative exploration in the futures and insurance industries,aimed at addressing income security for farmers.In this framework,insurance companies provided price insurance for agricultural products,such as hog price insurance,while futures companies offered risk transfer solutions akin to"reinsurance"for insurance companies.These so-lutions enabled risk hedging in the futures market.According to the implement hog"insurance+futures"projects,there were variations in the subsidy methods for insurance premiums across different regions.In some areas,governments partially covered the insurance premiums,while in others,livestock farming enterprises beared the full cost of insurance premiums.Consequently,higher insurance premiums were observed in certain regions,hindering the comprehensive promotion of the hog"insurance+futures"project in China.To enhance the participation of livestock farming enterprises in the hog"insurance+futures"program and mitigate the increased operating costs due to insurance purchase,the government should initiate agricultural subsidy policies and implement them in the hog"insurance+futures"project.Furthermore,the government could provide credit guarantees for enterprises participating in the project,thereby fur-ther encouraging bank credit support.This approach would promote the development of the hog"insurance+futures"project and foster its wider application in more regions,ultimately contributing to improve income security for farmers.
hoghog futureshog market"insurance+futures"countermeasures and recommendations
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