Optimizing the Risk Hedging Efficacy of Hainan Rubber's "Insurance + Futures" Synergistic Mechanism

Abstract

Hainan is the largest natural rubber production base in China. Rubber cultivation is the major economic sources for local farmers.
However, due to the significant influence of international market fluctuations on rubber prices, rubber tappers often suffer from "reducing
income despite rising output". "Insurance + Futures" mechanism is a new way to help farmers manage risk. It has been applied in the rubber
industry of Hainan Province. "Rubber tappers purchase insurance, insurers hedge futures, and futures companies mitigate risk", providing
price protection for rubber tappers. Based the rubber cultivation in Hainan, this paper explores the role of this mechanism in risk hedging and
the existing problems. It eschews theoretical abstraction to focus on practical issues, and propose reasonable suggestions to enable this mecha
nism to better serve rubber tappers and promote the development of the rubber industry. The full text is limited to 1600 words and does not
involve specific data.