A Study on the Insurance Rate of the Weather Index of Rapes in Jiangsu Province

Rapeseed, as one of the major oil crops in China, its production safety is of great significance to ensuring the national supply of grain and oil. As one of the top ten rapeseed production areas in Jiangsu Province, rapeseed production is vulnerable to natural disasters. Traditional agricultural insurance has problems such as rough rate determination and high moral hazard. Meteorological index insurance, based on objective meteorological data, can effectively reduce adverse selection and moral hazard. Based on the rapeseed yield and meteorological data of various cities in Jiangsu Province from 2001 to 2020, this paper uses the HP filtering method to separate the trend yield, constructs 12 meteorological indices such as precipitation, temperature and sunshine, and determines the pure rate through the parameter distribution fitting method and the non-parametric kernel density estimation method. Research shows that at a 100% coverage level, the net premium rate of rapeseed meteorological index insurance in Jiangsu Province ranges from 1.03% to 3.44%, and the net premium is between 9.01 and 30.19 yuan per mu. Finally, this paper conducts a comprehensive design of rapeseed meteorological index insurance from the perspectives of operation mechanism, dispersion of catastrophe risks, and multiple trigger conditions, and puts forward policy suggestions.