Agricultural insurance has helped boost China's agricultural economy, with each one-unit increase in insurance contribution linked to an 8.99% rise in agricultural development.
The impact is especially strong in China’s eastern provinces, non-major grain-producing areas, and regions with fewer natural disasters. Agricultural insurance promotes farming productivity by encouraging greater use of mechanisation and moderate-scale farming practices.
These, in turn, drive improvements in production efficiency and output.
The insurance contribution level was found to indirectly support agricultural development by influencing decisions around land use, input costs, and operational scale.
China’s government has supported the agricultural insurance sector since introducing premium subsidies in 2007.
By 2022, premium income reached $17.00b (RMB121.9b), covering 167 million rural households and providing protection against risks valued at $760b (RMB5.46t).
Source - Insurance Asia
