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China's insurance companies have been encouraged to develop more affordable and innovative products for farmers and migrant workers to support the government's efforts to expand the insurance coverage and establish a harmonious society.

"Developing insurance for farmers, migrant workers and agriculture will be a major task for us this year," Wu Dingfu, chairman of the China Insurance Regulatory Commission (CIRC), said yesterday at the country's annual insurance conference.

Around 91 percent farmers in the country's 63 counties took part in a rural healthcare project last year under which 6.73 million received a combined 600 million yuan as compensation for healthcare spending.

Meanwhile, over 30 million migrant workers from 22 provinces were insured last year, with the value of their coverage reaching 770 billion yuan.

"We will further strengthen our investment in rural areas this year by adding more outlets and improving marketing channels," said Wu Yan, general manager of China Life Insurance Co, the country's largest life insurer.

Statistics from the CIRC show that agriculture insurance premiums jumped 16.2 percent last year, hitting 850 million yuan.

"We are now working on legislation for agriculture insurance and will further promote the reserve system for agriculture catastrophe insurance ," said Wu Dingfu .

(China Daily 01/22/2007 page3)