China Issues Plan to Accelerate High-Quality Development of Agricultural Insurance

The Ministry of Finance, the Ministry of Agriculture and Rural Affairs, the National Financial Regulatory Administration and the National Forestry and Grassland Administration jointly issued the Implementation Plan for Accelerating the High-Quality Development of Agricultural Insurance.

The plan proposes vigorously developing agricultural reinsurance. Under a development model that combines agreed cessions and market-based cessions, it calls for improving the agricultural reinsurance system, refining the mechanisms and processes for agreed cessions, and optimizing catastrophe excess-of-loss protection.

The plan also proposes encouraging the development of commercial reinsurance and gradually increasing the share of market-based business.

The plan calls for advancing the improvement of the governance mechanisms of agricultural reinsurance institutions and enhancing the standardization of their operations and the sustainability of their development.