Core Insights - The article emphasizes the need for a diversified agricultural insurance structure in China, highlighting the impact of local government fiscal pressure on the development of agricultural insurance products [1][2][17] - It identifies a shift from a monopolized structure dominated by staple crop insurance to a more diversified insurance landscape that includes specialty crop insurance [3][17] Group 1: Agricultural Insurance Structure - China's agricultural insurance has developed a diversified structure characterized by staple crop insurance as the mainstay and specialty crop insurance as a supplement, with a decreasing concentration index from 0.67 in 2011 to 0.59 in 2022 [3] - Coverage rates for major crops have significantly increased, with corn, rice, and wheat insurance coverage expanding by 0.94, 0.39, and 3.11 times respectively since 2011, achieving an average coverage rate of 75.44% in 2022 [4] - The protection levels for agricultural insurance have improved, particularly for specialty crops, which have seen rapid growth due to central government policies, although disparities in protection levels remain significant [5] Group 2: Fiscal Pressure and Its Impact - Research indicates that fiscal pressure on local governments reduces the subsidy intensity, coverage levels, and growth rates of agricultural insurance, thereby hindering its high-quality development [2] - The article establishes a theoretical framework linking local fiscal pressure to the diversification of agricultural insurance products, suggesting that increased fiscal pressure leads to a preference for funding staple crop insurance over specialty crop insurance [6][7] Group 3: Market Competition Effects - Market competition plays a moderating role in the relationship between local government fiscal pressure and the diversification of agricultural insurance products, with new insurance companies enhancing product variety to gain market access [8][9] - The study proposes that competitive dynamics in the insurance market can mitigate the negative effects of fiscal pressure on the diversity of agricultural insurance offerings [16] Group 4: Empirical Analysis - Empirical analysis shows that local government fiscal pressure has a significant positive effect on the concentration index of agricultural insurance products, confirming the hypothesis that fiscal pressure reduces product diversification [13] - Robustness checks validate the findings, ensuring that the results are not influenced by sample selection or variable specification [15] Group 5: Policy Recommendations - The article suggests creating a differentiated subsidy mechanism based on agricultural contribution and farm size, advocating for a gradual reduction of subsidies for staple crop insurance while enhancing support for specialty crop insurance [18] - It recommends exploring multi-layered development strategies for specialty crop insurance under fiscal constraints and improving the bidding and performance evaluation systems for insurance providers to promote product diversification [18]