CIRC: to improve the floating mechanism of agricultural insurance rates

On November 13, the CIRC held a press conference and said that at the beginning of the year, in accordance with the Circular on further improving the formulation of terms of premium-subsidized agricultural insurance products from the central government, the upgrading and transformation of premium-subsidized agricultural insurance products from the central government has been deployed throughout the country and has now been completed.

Agricultural insurance products have been upgraded in an all-round way, the insurance liability has been expanded, the security level has been improved, and the premium rates and claim settlement standards have been reduced to a certain extent. A total of 738 agricultural insurance products and 22 insurance companies are involved in 34 provinces, cities and regions, 15 types of crops and 6 types of farmed varieties.

"in the next step, the CIRC will strengthen communication and cooperation with local governments, improve the product management system, formulate demonstration provisions for major crop insurance, and improve the risk zoning and premium floating mechanism of agricultural insurance." On the same day, he Hao, deputy director of the property Insurance Supervision Department of the China Insurance Regulatory Commission, said.

In the first three quarters of this year, the original premium income of agricultural insurance in China was 32.2 billion yuan, accounting for 5.14 percent of the property insurance business, an increase of 0.17 percent over the same period last year. At present, agricultural insurance has become the third largest type of property insurance after automobile insurance and enterprise property insurance.

According to the CIRC, in 2014, the number of insured households reached 247 million, the coverage of major crops exceeded 1.1 billion mu, the coverage rate was close to 50%, and the coverage rate of major food rations crops exceeded 65%.

Cancel the "absolute exemption"

Since the central finance implemented the subsidy policy in 2007, China's agricultural insurance has developed rapidly. However, with the rapid emergence of new agricultural operators, the original agricultural insurance clauses can no longer meet the needs of agricultural risk management under the new situation, affecting the further expansion of agricultural insurance coverage and the further exertion of its function. The narrow insurance liability, low protection level and strict claim settlement conditions have become the most strongly reflected questions from the majority of farmers and all parties.

But this agricultural insurance product upgrade marks the further improvement of agricultural insurance product system.

According to he Hao, the upgrading of agricultural insurance products has significantly expanded the insurance liability. On the basis of the original natural disasters, planting insurance has increased major disasters such as droughts and earthquakes, as well as geological disasters such as landslides and landslides, as well as diseases, insects, weeds and rodents; the insurance liability of aquaculture has been extended to all diseases and epidemics. Some areas have also expanded their responsibilities such as "snow disaster" and "wild animal attack" in the light of local reality.

The security level of major food crops has also been improved. The amount of insurance in most provinces and cities across the country has covered direct physical and chemical costs, and the average level of protection has been increased by 10% and 15%. For a small number of areas where direct materialization costs cannot be covered due to various factors, the CIRC requires insurance companies to develop commercial supplementary protection products to ensure that the basic security meets the national requirements.

The upgraded agricultural insurance products have abolished the absolute exemption clause and raised the standard of compensation for crops at different growth stages and in the case of no yield. Focusing on major agricultural provinces, the CIRC instructs various localities to reduce insurance rates in accordance with risk characteristics, risk distribution and operation in recent years, and the insurance premium rates for planting in some areas have been reduced by nearly 50%.

In addition, in accordance with the requirements of the State Council, the CIRC summed up the successful experience of agricultural insurance in some areas in promoting harmless treatment to ensure social food safety, and regarded the innocuous treatment of sick and dead livestock and poultry as a prerequisite for obtaining insurance reparations in accordance with government regulations. through economic means, guide farmers to actively carry out harmless treatment of sick and dead livestock and poultry to prevent sick and dead livestock and poultry from entering the market.

Ten companies apply to join the Agricultural Community

In response to a question from a reporter from the 21st Century Economic report, he Hao said that just after the summing-up meeting of the first anniversary of the founding of the China Agricultural Insurance and Reinsurance Community ("Agricultural Community") last week, another 10 insurance institutions proposed to join the Agricultural Community, which is currently under consideration in accordance with the procedure.

A year ago, 23 insurance companies qualified for agricultural insurance, including PICC, and China National Insurance Co., Ltd. jointly initiated and set up an organization, which aims to learn from international experience, fully integrate the resources of the domestic insurance industry, and improve the overall risk management level of agricultural insurance. to provide continuous and stable reinsurance for agricultural insurance.

At present, the qualification of agricultural insurance management is relatively open, there is no need for examination and approval, only in the examination and approval of products and in the setting of products, financial subsidies at all levels, how much farmers have to pay, protection responsibilities, and so on, the CIRC shall regulate and control according to the situation of the products. At present, the main body of agricultural insurance has a strong willingness to operate.

"for newly established companies, there is still room for development in terms of institutional establishment and manpower scale; in view of this situation, we have incorporated them into the agricultural community instead of direct insurance and reinsurance. It not only alleviates the company's desire to do agricultural insurance, but also gives development time and opportunities. In this year, the overall operation of the Agricultural Community is normal, and the operating indicators are all within the predetermined range. " He Hao told the 21st Century Economic report.

The CIRC requires that the member companies of the agricultural community should constantly improve the operating mechanism, strengthen the accumulation and research of risk data, improve the level of operation and management, and enhance the ability of agricultural insurance to cope with catastrophe risks. overcome the impact of the short-term and volatility of the external market on the sustained and stable development of China's agricultural insurance, and ensure the stability of risk dispersion channels of agricultural insurance after the disaster.