1 "Opinions of the Central Committee of the State Council on Promoting Rural Revitalization in an All-round Way and Accelerating the Modernization of Agriculture and Rural Areas" clearly puts forward that "insurance+futures" should play a role in serving the development of rural industries. This is the "insurance+futures" model written into the Central Document No.1 for six consecutive years. In recent years, the "insurance+futures" model has played an increasingly important role in supporting the development of rural industries.
2. The mode of "insurance+futures", that is, when farmers buy agricultural product price insurance, once the market price fluctuates and the price insurance compensation clause is triggered, the insurance company will pay the loss. Insurance companies transfer compensation risk by purchasing OTC option products of futures risk management subsidiaries, thus realizing "reinsurance" and forming a multi-risk win-win situation. This agricultural risk management model, initiated by the securities supervision system, was first explored by futures companies in the practice of serving agriculture, rural areas and farmers, and refined and solidified into a business model by Shanghai Futures Exchange, Zhengzhou Commodity Exchange and Dalian Commodity Exchange, and gradually improved.
3. In view of the price sensitivity of new agricultural business entities, Zhengshang Institute used the "insurance+futures" pilot model for reference, fully considered the legal person status of cooperatives, and introduced the "cooperative" substitution in the "insurance" link. Under this model, Hongsheng Fruit Cooperative, as a legal person, can purchase OTC options directly from the risk management subsidiary of the futures company. Compared with "insurance+futures", the "cooperative+OTC option" model reduces the "insurance" links, thus shortening the distance between agricultural operators and the futures market, reducing some intermediate links and reducing the "insurance" cost of agricultural operators.