Agricultural index insurance: a review

Agricultural index insurance, an important tool in managing agricultural production risk, is widely used in the past 20 years．Research works on agricultural index insurance from 2000-2020 are reviewed, and the following are analyzed: demand-influencing factor analysis, product design and optimization, evaluation of risk transfer efficiency and welfare improvement effect．Then some research prospect are put forward. On the demand side, the “non-rationality” theory should be applied and collective decision making and long-term dynamic studies should be carried out．For product design and optimization, multi-scale and multi-source data should be combined, and complex relationship modeling should be used to reduce basis risk．For evaluation of risk transfer efficiency and welfare improvement effect, effectiveness thresholds of various index insurance products should be set from area to area, and evaluation should be carried out by taking multiple stakeholders and multidimensional criteria into account ．