Agricultural insurance has provided 141.2 billion yuan in coverage this year
Recently learned from the China Agricultural Insurance Reinsurance Community that, as an important component of the mechanism for dispersing major agricultural catastrophe risks, in 2015 the China Agricultural Reinsurance Community provided 141.2 billion yuan in risk coverage for agricultural insurance, accounting for 53% of the market's overall reinsurance demand.
In recent years, China's agricultural insurance has developed rapidly. In 2015, China's agricultural insurance covered major crops of more than 1.1 billion mu, providing 1.66 trillion yuan in risk coverage, accounting for about 16.2% of agricultural GDP; insured farming households reached 247 million household-times, accounting for about 60% of farming households; the number of insured crop varieties exceeded 170, basically covering all areas of agriculture, forestry, animal husbandry and fisheries.
However, as the process of agricultural modernization accelerates and agricultural production gradually shifts toward appropriately scaled operations, the types of risks faced by the industry are becoming increasingly complex and risk exposure is growing. From international experience, developed major agricultural countries have all established agricultural insurance catastrophe risk dispersion systems suited to their national conditions.
In 2014, 24 domestic direct insurance companies and reinsurance companies qualified to operate agricultural insurance jointly initiated the establishment of the China Agricultural Reinsurance Community, making it an important component of China's agricultural insurance catastrophe risk dispersion mechanism.
Data show that in 2015 the China Agricultural Reinsurance Community provided 141.2 billion yuan in risk coverage for agricultural insurance, accounting for 53% of the market's overall reinsurance demand. Among the losses from this year's Liaoning drought and typhoon disasters in Zhejiang, Guangxi and other places, the Agricultural Reinsurance Community paid claims amounting to 500 million yuan, accounting for more than 50% of the industry's reinsurance claims payout.
Li Lisong, head of the management agency of the Agricultural Reinsurance Community, introduced that the establishment of the Agricultural Reinsurance Community has also provided reinsurance support and related technical services for more than 100 innovative agricultural insurance products, including weather index insurance, price insurance, and locally distinctive insurance products, actively cooperating with the reform of agricultural insurance clauses and actively supporting industry innovation through various means.