China’s agricultural insurance market reaches $521 billion sum insured

China’s agricultural insurance market reaches $521 billion sum insured | Insurance Business

China’s agricultural insurance market reaches $521 billion sum insured

The Chinese agricultural insurance market has grown rapidly in recent years due to wider coverage and higher premium income, according to the country’s insurance and banking regulator.

According to Liang Tao, vice chairman of the China Banking and Insurance Regulatory Commission (CBIRC), the industry’s sum insured in 2019 reached RMB3.6 trillion (US$521.6 billion) in 2019, China Knowledge reported. Meanwhile, agricultural insurance premiums are estimated at RMB68 billion (US$9.85 billion), up from RMB5.18 billion in 2007.

Over 360 million households in rural areas have obtained over RMB240 billion of insurance indemnity since 2008, said Liang, who was speaking at a forum in Tianjin.

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He added that the CBIRC will continue to encourage the industry to develop new agricultural insurance products, as new technologies are constantly developed in the agriculture sector.

Agricultural insurance in China covers more than 270 types of crops from various risks such as plant diseases and pests, possible losses in quality or yield, natural disasters, and other risks, the report said.