Research on the Pricing Mechanism of Xinjiang Cotton Income Insurance from the Perspective of Income Rationality Industry

Abstract

Cotton is the second largest agricultural product in China after grain crops. It is an important industry promoting the development of the textile industry and agriculture, and plays a significant role in driving the national economic development. Xinjiang is an important region for cotton cultivation. With its huge output and excellent quality, it has become an important part of the supply chain in China and even globally. However, as an agricultural planting model, the output and price of cotton are aff ected by various factors such as natural factors, international situations, and market demands, which leads to a significant fluctuation trend in cotton output and thus the farmers’ income. These fluctuations increase the risk for the farmers, however cotton income insurance is considered as an important risk prevention tool for farmers. The rationality of the pricing of cotton income insurance is an important concern for insurance institutions, to ensure the income of farmers but also maintain the economic benefi ts of insurance enterprises. This study fully follows the requirements of income rationality to explore the construction path of the income insurance pricing mechanism for cotton in Xinjiang, with the aim of promoting the sustainable development of the cotton planting industry in Xinjiang.