Agricultural insurance in China has been a stable growth sector in the property insurance industry, consistently achieving high premium growth rates, averaging around 20% year-on-year (YoY) for over a decade, reported Caixin Global.

However, in the first half of 2024, agricultural insurance premium growth was muted, increasing only 6% YoY. 

In provinces such as Xinjiang, Guangdong, Jilin, and Yunnan, signed premium scales fell by approximately 20% to 30% YoY. 

Although the situation varies by province, and the reasons for the slowdown differ, many industry insiders attribute the decline to financial pressures faced by local governments.

Unlike the auto insurance market, which faces limited growth potential and intense competition, and credit guarantee insurance, which carries high risks and loss ratios, agricultural insurance has been profitable on the underwriting side.

Source - Insurance Asia