Study of Agricultural Insurance and the Systemic Risk in Taiwan

• Main Authors: Zhang, Rui, 張睿
• Other Authors: 張士傑
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/pwk8w7

碩士 === 國立政治大學 === 風險管理與保險學系 === 107 === Agriculture is one of the basic industries and important to common people. Be-cause of the small area of Taiwan, the agriculture is very concentrated. So the risks among counties are obviously positive correlated and difficult to hedge. Meanwhile, moral hazard and adverse selection are also big problems due to information asymmetry and high cost of damage prospecting and farmers’ behavior surveillance. As a result, operating agricultural insurance is not easy in Taiwan. In 2015 and 2016, insurance of pears and mangoes began to be sold respectively. However, the prices are relatively high and little farmers bought them. In fact, only 6 policies of mango insurance are sold in 2016. So this article aims at studying agricultur-al insurance and the systemic risk in Taiwan. Pooling some counties of China together with Taiwan and increasing underwriting crop species are two possible ways to diver-sify the systemic risk. The results are below: (1) When the distance between two counties is no less than 900km, the yields of rice or corn are unrelated. (2) Pooling some Counties of China do help the diversification of systemic risk for rice, but it’s useless for corn. The systemic risks for different species are not identical. (3) When the insurance covers few species, increasing more species can help di-versify the systemic risk. But if the 10 main species are already covered, add-ing more underwriting species do not help.