General information on matters related to agricultural insurance premium subsidy in 2013

Caijin [2013] No. 7

Ministry of Agriculture, financial departments (bureaus) of provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan, Finance Bureau of Xinjiang production and Construction Corps, China Grain Reserve Management Corporation, China Agricultural Development Group Co., Ltd.:

In order to conscientiously implement the relevant spirit of the CPC Central Committee and the State Council, implement the regulations on Agricultural Insurance, further do a good job in subsidizing agricultural insurance premiums, and give full play to the financial role of agricultural insurance in supporting agriculture, the relevant matters are hereby notified as follows:

I. increase the proportion of insurance premium subsidy for fattening pigs in the central government.

Since 2013, on the basis of at least 30% of local financial subsidies, the proportion of central government insurance premium subsidies for fattening pigs has increased from 10% to 50% in the central and western regions and 40% in the eastern regions. Other insurance policies shall be carried out in accordance with the relevant provisions such as the Circular of the Ministry of Finance on further increasing support and doing a good job in agricultural insurance premium subsidies (Caijin (2012) No. 2). Financial departments (bureaus) of all provinces (autonomous regions and municipalities) are requested to study and report the work plan of agricultural insurance in 2013, the summary of agricultural insurance work in 2012 and relevant data tables (including insurance types with local characteristics) in time in accordance with the above-mentioned policies and local conditions.

II. Conscientiously implement the provisions of the regulations on Agricultural Insurance

The regulations on Agricultural Insurance, which came into force on March 1, 2013, is of great significance to the sustained and healthy development of China's agricultural insurance industry. According to the regulations on Agricultural Insurance, the Ministry of Finance will further improve the central financial measures for the management of agricultural insurance premium subsidies and improve the agricultural insurance catastrophe risk reserve system. In order to do a good job in the relevant work, the financial departments (bureaus) of all provinces (autonomous regions and municipalities) are requested to provide the following materials before March 10, 2013, while conscientiously implementing the regulations on Agricultural Insurance: first, the situation of the agricultural insurance catastrophe risk dispersion mechanism, including major practices and policies, provisions on the provision, management, use, transportation and accounting of disaster risk reserves, etc. 2007-2012 insurance institutions planting, aquaculture, forestry insurance premium, compensation, underwriting profits, comprehensive cost rate and disaster risk reserve, use and balance and other data, suggestions on agricultural insurance catastrophe risk reserve system and so on. The second is the policy suggestions to further improve the agricultural insurance premium subsidy system.

III. Further expand the pilot project of performance evaluation of agricultural insurance premium subsidies

According to relevant regulations, in order to strengthen the management of premium subsidy funds and improve the efficiency of the use of financial funds, since 2013, 10 provinces (regions) in Shanxi, Inner Mongolia, Heilongjiang, Jiangsu, Zhejiang, Anhui, Hubei, Hunan, Hainan and Sichuan have been selected to carry out pilot work on performance evaluation of agricultural insurance premium subsidies, and other provinces (autonomous regions and municipalities) are encouraged to explore pilot projects in the light of local conditions. In accordance with the relevant provisions of the temporary measures for performance Evaluation and Management of Fiscal Expenditure (2011) and Caijin (2012) 2, and combined with the actual work of agricultural insurance, pilot provinces (autonomous regions) should gradually establish and improve the performance evaluation system, explore the organic combination of it with the improvement of agricultural insurance policies and the selection of insurance agencies, and study and formulate a work plan for performance evaluation to be submitted to our department before March 31, 2013. Organize and implement it in time.

The financial departments (bureaus) of all provinces (autonomous regions and municipalities) are requested to further increase guidance and support, strengthen supervision and management, and coordinate the work of agricultural insurance in accordance with the principle of "government guidance, market operation, free will, and coordinated promotion". We will continue to promote the sustained and healthy development of agricultural insurance.

Ministry of Finance

February 19, 2013