Can Government Regulation Promote the Development of Agricultural Insurance Technology? Evidence from China

As a core formal institutional arrangement within the agricultural insurance governance system, government regulation plays an important role in promoting the development of agricultural insurance technology (AIT). However, the role of government regulation in this domain remains insufficiently explored. Using data from 278 prefecture-level cities in China from 2012 to 2022, this study examines the impact of government regulation on the development of AIT. The results show that government regulation significantly promotes AIT development, with administrative penalties and market access playing a dominant role, while information disclosure has yet to yield a significant impact due to an underdeveloped system. Heterogeneity analysis reveals that the positive impact of government regulation on AIT development is more pronounced in major grain-producing areas and high-risk regions. Moreover, public attention, as an informal institution, reinforces the impact of government regulation on AIT development. This study extends the institutional perspective on AIT development and provides practical implications for optimizing regulatory frameworks and accelerating the digital transformation of agricultural insurance.