The Feasibility Study of the Establishment of Crop Insurance inTaiwan---the Application of Actuarial Break-Even Model
| Autor: | Shu-Chuan Tung, 董淑娟 |
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| Rok vydání: | 2002 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 89 The current government’s major agricultural policy for helping farmers affected by agricultural disasters is based on the Salvation Regulations for Agricultural Disasters issued on August 31,1991. The main purposes of the Salvation Regulations for Agricultural Disasters are assisting the farmers in replanting and minimizing the losses caused by agricultural disasters. As a matter of fact, the Salvation Regulations for Agricultural Disasters has its limitations. In order to protect the crop production, maintain farmers’ life, relieve both the administration and financial burden of the government, and face the challenge of liberalization in international trade, a supplementary system for the existing Salvation Regulations for Agricultural Disasters is definitely needed. The establishment of crop insurance is one of the possible alternatives. The main reasons of no crop insurance executed in Taiwan are the imperfect of adequate statistical data, the shortage of professional evaluator about the damage of the crop, the possible consequent financial burden for the government, and the willingness of participation in the crop insurance. However, after the cost-benefit analysis, the study showed that increasing 2.09% on production cost per hectare is a possible solution to cover the losses of agricultural disaster. This percentage increased will not cause a major financial burden for either government or farmers. Furthermore, the dollar amount collected from the percentage increased could be used as the pure premium for the damage caused by agricultural disasters. This study also suggested that protection of production cost is the major consideration to establish the crop insurance in Taiwan. Once the needed database has been fully established in the future, the loss of agricultural yield can be covered. The main objective of the study is to calculate the premium of crop insurance by the actuarial Break-Even model. The Class rating for crop’s pure premium in this study is based on the geography of Prefecture & City and the different degree of damage in crops. The conclusions, as summarized below, of this study can be used as a reference for calculating the fair crop pure premium. 1. Based upon the data collected from 1988 to 1999 and the calculation by the Actuarial Break-Even Model, the estimated pure premium for cultivated land in Taiwan is NT$ 6,900 per hectare. If considering the factor of replanting the pure premium will drop to NT$ 3,700 per hectare. 2. In general, if only based upon the geography of the Prefecture & City, Kaohsiung Hsien will be the highest pure premium, NT$ 6,800 per hectare. 3. Considering the factors that affect short-term crops, this study also provides the table of Short-term rating. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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