Other problems of weather insurance index

Although compared with traditional agricultural insurance, weather index insurance has many advantages, but in the actual operation process in China, we still need to pay attention to the following issues:

First of all, it is necessary to improve the formulation technology of weather index. Weather index is the standard of this kind of insurance payment, and its accuracy is closely related to the insurance company's rate determination and residual loss. However, China has a vast territory, and its natural environment and climatic conditions are complex and changeable. Considering the existence of microclimate in some areas and the limitation of meteorological technology in China, it is very difficult to accurately determine the meteorological index related to crop yield.

Second, the basis risk. The basis of compensation is the deviation between the actual meteorological index and the agreed meteorological index. Therefore, in the same agricultural insurance risk zoning, all the insured buy insurance at the same rate, and when disasters occur, the insured get the same compensation. However, even if they suffer the same disaster, the degree of disaster is different between villagers and villages, so there may be such a situation: some farmers will be compensated if they are not affected; Some of them were seriously affected, but the compensation they received was not enough to make up for their disaster losses.

Third, not all regions are suitable for weather index insurance. In some high-risk areas, disaster relief may be more effective in these areas, because the risks there are not insurable or it is uneconomical to use insurance. Weather index insurance is not suitable for a certain farming method or a certain crop, such as some areas with developed irrigation systems that are less affected by weather risks, because the change of crop yield has little correlation with the change of weather index.