Classification design of the meteorological index insurance for cold-frost damage on tea in Fujian Province

To provide meteorological index products for tea insurance, the tea cold and frost damage insurance period and trigger meteorological indicators were analyzed to calculate the yield reduction rate, occurrence probability of cold-forest damage, and pure premium rate based on the meteorological data, and tea yield and disaster data of Fujian Province. Then, based on the risk assessment of cold-frost damage in tea plants, the regional premium rates under different trigger conditions and in different risk areas were improved. The insurance compensation ratio and compensation under different levels of cold-frost damage and in different periods were formulated and verified based on the intensity of cold-frost damage, the period of damage, and the average insurance compensation situation. Finally, a weather index insurance product for cold and frost damage to tea was provided. Results showed that the extreme minimum temperature of 4 °C, used as the initial trigger index of the tea cold-frost damage index insurance, as well as and seven grades with 1 °C interval, can fully reflect the historical disaster situation. Under the extremely low temperature of 4 °C, the average insurance premium rates in areas with altitudes below 200 m, 200−600 m, 600−900 m, and above 900 m in the northern region were 1.1%, 3.6%, 6.1%, and 8.4%, respectively; the average insurance premium rates in areas with altitudes below 300 m, 300−700 m, 700−1100 m, and above 1100 m in the southern region were 0.5%, 2.0%, 3.9%, and 5.5%, respectively. The average compensation rate of spring tea cold-forest damage in the northwest, northeast, southwest, and southeast regions was 78.4%, 90.5%, 72.7%, and 36.6%, respectively; the province’s average compensation rate was 69.5%, and the average basis ratio was −1.65%. The compensation rate and basis ratio met the basic requirements of insurance companies for the compensation ratio and basis ratio. The designed product can be applied to the weather index insurance of cold and frost damage of Fujian spring tea; therefore, this study could provide technical support for tea farmers to transfer and disperse the cold and frost damage risks.