In another race, China has secured a second position of being a biggest agriculture insurance market in the world beneath United States, as stated by insurance governing bodies on Tuesday.
The agriculture insurance covered as total 7 million hectares of Chinese crops in 2013, representing 45 percent of overall crops planted in the same year, stated Xiang Junbo, head of the China Insurance Regulatory Commission.
It is understood that since 2007, China has been running a pilot agricultural insurance central government financial support, as of 2013, agricultural insurance premium income rose to 5.18 billion yuan from 30.66 billion yuan, an average annual growth rate of 34.5%, agricultural insurance risk protection from 112.6 billion yuan increased to 900.6 billion yuan.
In 2013, total compensations that were paid to aural households worth 20.9 billion yuan, which facilitated the rural households by 33.67 million, confirmed by Xiang, China's top legislature. The country’s largest agriculturist is located in Heilongjiang province and he got total compensation of 3.52 million last year, said Xiang
He added, “China always gives salutation to all the foreign capital to invest in the programs related to agricultural insurance.” Chen Wenhui, Vice chairperson of China Insurance Regulatory Commission emphasized over the prominence of introducing catastrophe insurance system, which will help the government to release heavy financial burdens. This insurance system will compensate the planters by covering 30-40 percent of losses worldwide and in China; it covers up below the line of 1percent, stated Xang.
The vital part of catastrophe insurance is to focusing and covering lands and life safety correspondingly, while the policies are being experimented in Shenzhen city and Chuxiong Yi Autonomous Prefecture.
Chen, pointed out that the central government mainly involving people's livelihood, rice, wheat, corn, cotton and other 15 categories of major crops give premium subsidies, since this year the central government is coordinating the implementation of the "15 + X" premium subsidy model, that in addition to 15 kinds of national subsidies foreign species, the country can also choose a category or categories of characteristics of agricultural products ( 000061 , stock it ) and enjoy a central pillar of agricultural insurance premium subsidies or Yijiang daibu fiscal policy.
Chen said, China's agricultural insurance underwriting species already covered in all aspects of agriculture, forestry, animal husbandry, fisheries, covering all provinces, underwriting nearly 200 million times a farmer, has become the world's most important and most active agriculture One of the insurance market.
China is also looking forward to encourage catastrophe insurance regulations in order to attain more government backing, Chen Said.
