With the rapid development of rural revitalization, agricultural insurance plays an increasingly important role in dispersing agricultural risks and promoting the stable and sustainable development of agriculture. But its role is not considerable. In some areas, the coverage rate of agricultural insurance is less than one in 1,000. Why are farmers reluctant to take out insurance in the face of government subsidies of up to 80%? What kind of situation is agricultural insurance facing now?

Agriculture is our country's primary industry and the foundation of the national economy, but it is also the weakest industry in our country with the least international competitiveness. There are too many uncontrollable factors in it. Compared with agriculture, the insurance industry in the real sense of our country began in 1980, and has several decades of development in our country. Although great achievements have been made, there is still a big gap compared with western developed countries. It is not difficult to find that the development of agricultural insurance in the past ten years has not been ignored. On the contrary, with the encouragement and support of various national policies, the subsidies of agricultural insurance have been increasing every year, and the scope covered by agricultural insurance has also been expanding. Under such circumstances, agricultural insurance is still facing the situation that farmers do not want to insure and the market does not want to enter the bureau. What's the main problem?

The most important factor is complexity. China Insurance Data Center conducted a survey on some farmers, cooperatives, leading enterprises, co-organizers and district and county governments that have not purchased agricultural insurance. The reason that did not buy insurance among them, mainly is "indemnity is too low", "procedure is too complex", "pay cannot afford insurance premium". Second, insurance companies are unreliable. The particularity of the agricultural industry determines that agricultural insurance is destined to have a high loss rate. A blizzard and a heavy rain will bring huge losses to agriculture. Agriculture is greatly restricted by natural factors, and the possibility of compensation is great. According to data, the average comprehensive loss ratio of agricultural insurance in China has exceeded 120%. The high loss ratio runs counter to the management objectives of general commercial insurance and lowers the profits of insurance companies. Insurance companies in order to ensure performance, some local crop insurance rates as high as 9 to 10 percent. Such a market environment, led to some commercial insurance companies are not willing to enter the rural market to carry out insurance business. The remaining insurance options are mixed with dodgy companies. Finally, industry barriers. In fact, the so-called insurance is essentially a probability game based on the "law of large numbers". However, because of the risk specificity of agriculture, how to calculate the probability without data? So put in front of agricultural insurance, it will be such an isolated situation. In addition to the lack of data, China's agricultural market is also quite complex. Across a province, its geographical characteristics, agricultural production, are a world of difference. Barriers to agricultural insurance are too deep. Such a piece of market, even the traditional rural players did not understand, other industry giants, more dare not enter.

（Writer：Ganny）