Corn Drought Index Insurance Purchase Intention Based on the Empirical Analysis of Liaoning Province

Agriculture is of vital significance for China's economic, politics, social development and civilization progress. Under the commodity economy, as the fundamental of other industries, its own vulnerability and the fluctuation in production bring huge risks to the security and stability in reproduction. As the world entered the stage of accelerated industrialization and post-industrial age, the contradiction between environmental problems and economic development becomes increasingly sharp. Since the reform and the opening-up, the party and the government turned its focus to economic construction, making "three rural problems" as a task of top priority. As a risk management tool, agricultural insurance can effectively manage and control various risks occurred in agricultural production, therefore been widely used in the risk management of agricultural production in not only China but also around the world. However, over the years, many problems have exposed in the practice of agricultural insurance, such as market failures, adverse selection, difficulties in claim and huge operating pressure, making it less effective as a risk management tool. According to international experience, as a new type of agriculture insurance, weather index insurance can improve the objectivity and scientificity in the process of agricultural insurance claims, effectively reducing the market failure and adverse selection problem. As a result, this insurance product has been widely used around the world, especially in some developing countries, in recent years. China also have established various weather index insurance pilots and achieved success on the whole. But there still exists some problems. As one of China's main production areas of high-quality corn, the stability and safety of corn production in Liaoning is high related to the sustainable development of numbers industries of China. However, Liaoning province, in the meantime, is also one of the areas with high drought risks, whose outbreak frequency and intensity surpassing the vast majority areas in China. At the same time, since the operation of agricultural insurance in Liaoning province, more and more problems come to surface. Therefore, the exploitation of corn drought index insurance, which can manage the drought risk effectively in corn production as well as been widely accepted by insurance companies and farmers, bring positive effects for sustained and healthy development in Liaoning province economy and the stability of farmers' production and living. Exploiting new insurance products demand not only design efforts but also loading attention to farmers' actual insurance demand and influence factors. Therefore, from the perspective of farmers' actual insured will, the author carries out empirical research about famers purchase intention for the new agriculture insurance on the basis of field research to farmers in Liaoning, figuring out farmerreal cognitive situation and demands about the corn drought index and drought risk insurance, which helps to understand the main factor affecting the purchasing intention and put forward the corresponding countermeasures and suggestions for Liaoning government when carrying out the policy in the future.