7 months ago
On a date
13 Feb 17’
CHINA UPGRADES SUPPORT TO AGRICULTURE INSURANCE
Right before the Chinese New Year, Ministry of Finance (MoF) in China released an updated guidance of agriculture insurance in China. It increased the premium support towards central and west China, and highlighted the commitment in supporting the so-called major three crop types, respectively are Rice, Wheat and Corn.
Effective since the beginning of 2017, the central government in China will cover 40% of the crop insurance premium in central and west provinces while the east area remains 35%; in the major agriculture-important counties/districts, which are define by the MoF, such cover will be further leveraged up to 47.5%. More generous support from central government is meant to further unload the financial pressures on provincial, prefecture and county level governments, as the new policy set 20% premium covered by farmer as the precondition to enjoy this increase.
With this being introduced, we are foreseeing two major changes. The first is the unified premium rate at provincial level, which will take the impact—a county level rate structure could emerge somehow. Secondly, the penetration rate of Rice, Wheat, and Corn, which is around 70% in average nowadays, will see a robust increase.
Posted 7 months ago by admin