TITLE:
Behavior and Effectiveness Evaluation of Financial Subsidies for Agricultural Insurance in China
AUTHORS:
Desheng Guo, Yuyao Zhou, Chengyi Pu
KEYWORDS:
Agricultural Insurance, Financial Subsidy Efficiency, Three-Stage DEA Methodology, Regional Differences
JOURNAL NAME:
Open Journal of Business and Management,
Vol.13 No.5,
August
21,
2025
ABSTRACT: Based on the special characteristics of agricultural risks, traditional commercial insurance companies find it difficult to carry out pure agricultural insurance business due to technological lag and institutional constraints. Since the implementation of the central financial premium subsidy policy in 2007, it has significantly expanded the coverage of agricultural risk protection and pushed China to become the largest country in the world in terms of the scale of agricultural insurance by 2021. This study measures the efficiency of the current policy concerning the single form of agricultural insurance subsidies, lack of regional differentiation, and misalignment of product supply and demand based on provincial panel data from 2018-2021 using a three-stage DEA approach. The results show that the efficiency of agricultural insurance subsidies fluctuates significantly, the overall level is low, inter-provincial differences are apparent, the efficiency is higher in economically developed regions and main grain-producing areas, and the efficiency is poor in the west and less developed regions.