During the process of promoting development of China’s price insurance, in addition to observing general principles, following development principles need to be emphasized.

The following five approaches should be observed in the future development of China’s price insurance for agricultural products.

Internationally speaking, income insurance in the United States is the most typical product in planting price insurance.

At present China’s price insurance is still in a preliminary and experimental stage, which is not only due to few premium scale and limited pilot regions, but also due to inconclusive product elements and various alternative forms in reality.

Price insurance is a new type of insurance that compensates for economic loss caused by the lower price of agricultural product than the fixed price or price index.

In late Qing Dynasty, China was facing domestic unrest and foreign aggression. The failed reforms including the Reform Movement (also known as Hundred Days’ Reform) and the New Deal during late Qing Dynasty could not save the Qing government from the fate of extinction.

During the middle-to-later period of Ming Dynasty, highly centralized political system grew increasingly corrupted, land annexation became extremely serious, and the people lived in dire poverty, all of which led to a ruling crisis of the Ming Dynasty.

In 1069 A.D., Wang Anshi (1021-1086) launched a comprehensive supplementary reform with relevant supporting measures, which centered on the management of financial sector and the rectification of army relating to various areas such as politics, economy, culture, social and military affairs.