Study on the Effect of Influence of Agricultural-insurance on Agricultural Credit Market

Agricultural insurance plays a similar role to the collateral and collateral in credit lending activities. Agricultural insurance has positive effect on rural credit, while rural insurance institutions can improve the financing capacity of agricultural production operator. Agricultural insurance will have substitution effect on credit development by absorbing rural capital and capital allocation function. It is important to perfect the system of agricultural insurance. It will help to alleviate the information asymmetry in credit markets through the function of agricultural insurance and can alleviate the plight of the rural credit market in our country at present.