Chinese farmers find security in agricultural insurance
(Xinhua)Updated: 2007-01-20 14:45
Premiums from agricultural insurance in China recorded a 16.05 percent
year-on-year rise to 846 million yuan (US$108 million) last year.
This
second highest growth came after China's agricultural insurers reported a rise
of 84.26 percent in premium from 396 million yuan in 2004 to 729 million yuan in
2005, ending a decade-long decline.
Last year was also the second
straight year that the agricultural insurance business stayed in the black after
losing money for 18 years.
The China Insurance Regulatory Commission is yet to release the
2006 profit figures. Last year China's agricultural insurance expenditure
totaled 584 million yuan, up 4.6 percent from 2005.
Guo Zuojian, director
of the Property Insurance Department of the China Insurance Regulatory
Commission, attributed the growing enthusiasm of Chinese farmers for insurance
to fiscal allowances by local governments.
The Shanghai municipal
government, for instance, paid 33 percent of the crop insurance premiums for
farmers, while Meishan city government, in the southwestern Sichuan province,
offered a 66 percent subsidy on premiums for dairy herd
insurance.
Farmers in Suzhou only need to pay 38 percent of the premium
for rice insurance, while those in northwestern Xinjiang were spared 12 percent of the premium for cotton
insurance.
The insurance mechanism initiated in 2004 began trial
operation in Shanghai, Jilin and Heilongjiang and later extended to Jiangsu,
Liaoning, Xinjiang, Ningxia, Inner Mongolia, and Sichuan.
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