Annex: Guidance on Accelerating the Quality Development of Agricultural Insurance?
19 September 2019
Agricultural insurance, as an important means to disperse the risks of agricultural production and operation, plays an important role in promoting the development of modern agriculture, promoting the revitalization of rural industry, improving rural social governance and ensuring farmersincome. In recent years, under the correct leadership of the CPC Central Committee and the State Council, various regions and relevant departments have actively promoted the development of agricultural insurance and continuously improved the agricultural insurance policy system, and achieved remarkable results. However, the development of agricultural insurance still faces some difficulties and problems, and there is still a big gap compared with the actual demand of serving agriculture, countryside and farmers. In order to speed up the development of high quality agricultural insurance, the following suggestions are put forward. ?
I. General requirements
(2) Basic principles.
Government guidance. Better play the role of government guidance and promotion, through increasing policy support, strengthening business supervision, standardizing market order, to create a good environment for the development of agricultural insurance. ?
Market operation. In line with the inherent law of agricultural insurance development, we should give full play to the decisive role of the market in the allocation of resources, adhere to the demand-oriented approach, strengthen innovation guidance, and give full play to the autonomy and creativity of insurance institutions in the operation of agricultural insurance.
Voluntary. The wishes of farmers and agricultural production and operation organizations shall be fully respected and their participation in agricultural insurance shall not be forced or restricted. Combining with the actual situation, this paper explores the agricultural insurance business model that conforms to the characteristics of different regions, and fully mobilizes the enthusiasm of all participants in agricultural insurance.
Cooperative promotion. Strengthen coordination and give overall consideration to new agricultural operators and small farmers, not only give full play to the economic compensation and risk management functions of agricultural insurance, but also pay attention to integration into rural social governance, and jointly promote agricultural insurance work.
(3) main objectives.
By 2022, a multi-level agricultural insurance system with perfect functions, standardized operation and complete foundation will be basically established, which will be suitable for the stage of agricultural and rural modernization, for the needs of farmersrisk guarantee, and for the division of responsibilities between central and local governments. Agricultural insurance coverage of rice, wheat and maize is more than 70%. Income insurance has become an important type of agricultural insurance in China. The depth of agricultural insurance (premium/added value of primary industry) reaches 1%, and the density of agricultural insurance (premium/agricultural population) reaches 500 yuan per person.
By 2030, agricultural insurance will continue to improve its quality and efficiency, transform and upgrade, and its overall development will basically reach the advanced international level. It will achieve a win-win pattern of subsidies efficiency, industry security, farmersbenefits and sustainable institutions.
II. Improving the Service Ability of Agricultural Insurance
(4) Expanding the coverage of agricultural insurance. Promoting the pilot reform of policy-oriented agricultural insurance, on the basis of enhancing the intrinsic attractiveness of agricultural insurance products and implementing the strategy of ensuring important agricultural products, we will steadily expand the coverage of large-scale agricultural insurance related to the national economy, peoples livelihood and national food security, increase the insurance coverage rate of small farmersagricultural insurance, and achieve full insurance. Explore innovative breeding insurance mode and financial support mode relying on breeding enterprises and large-scale farms (households) to improve the enthusiasm of insurance institutions to carry out breeding insurance. We will encourage local governments to develop superior and characteristic agricultural products insurance according to local conditions, and gradually increase its proportion in agricultural insurance. Timely adjust and improve the forest and grassland insurance system and formulate relevant management measures.
(5) Improve the level of agricultural insurance protection. Based on the adjustment of agricultural industrial structure and the change of production cost, a dynamic adjustment mechanism of agricultural insurance guarantee level is established. On the basis of covering the direct materialized cost of agricultural production, pilot projects of agricultural catastrophe insurance are expanded and the guarantee level is gradually improved. We will promote the pilot projects of full cost insurance and income insurance for rice, wheat and maize, promote the insured price and income of agricultural insurance, and guard against the double risks of natural disasters and market changes. We will steadily and orderly promote income insurance and promote the stability of farmersincome.
(6) Broadening the field of agricultural insurance services. To meet the diversified demand for risk protection, we should explore and construct an agricultural insurance product system covering basic insurance, commercial insurance and additional insurance of financial subsidies. We will steadily promote index insurance, regional output insurance and agricultural-related insurance, explore a package of comprehensive insurance, and bring agricultural production facilities and equipment such as agricultural machinery greenhouses and warehouses into the scope of protection. Develop insurance products to meet the needs of new agricultural operators. Innovation and development of environmental pollution liability insurance and agricultural product quality insurance. Support the development of short-term accident injury insurance for farmers. Insurance institutions are encouraged to provide better insurance services for agricultural foreign cooperation. Agricultural insurance will be incorporated into the system of prevention and rescue of agricultural disasters and accidents, giving full play to the functions of insurance in pre-risk prevention, in-event risk control and after-claim service.
(7) implement measures to facilitate and benefit the people. We will implement the national policy of strengthening agriculture and benefiting farmers and rich peasants, earnestly safeguard the interests of insured peasants and agricultural production and operation organizations, fully safeguard their right to know, and promote the popularization and standardization of agricultural insurance clauses. Insurance institutions should make the policy of benefiting farmers, the situation of insurance, the result of compensation settlement, service standards and regulatory requirements five openness, and make sure that the fixed losses reach the households and the claims reach the households without hesitation or delay, so as to improve the efficiency of insurance claims settlement and improve the scientific, accurate and efficient mechanism of investigation and determination of losses. Local governments are encouraged to set up loss approval committees according to local conditions, and insurance institutions are encouraged to implement the policy of non-compensation preferential treatment.
3. Optimizing the Running Mechanism of Agricultural Insurance
(8) To clarify the boundary between government and market. Local governments at all levels do not participate in the specific operation of agricultural insurance. On the basis of fully respecting the autonomy of insurance institutions in product development, actuarial pricing and insurance claims settlement, the enthusiasm of market participants can be mobilized by giving necessary insurance premium subsidies, disaster compensation and providing information and data. Grass roots government departments and relevant units may, in accordance with relevant regulations, assist in the handling of agricultural insurance business.
(9) Improving the mechanism of catastrophe risk dispersion. We will speed up the establishment of a multi-party, risk sharing, multi-level and decentralized mechanism of agricultural insurance disaster risk dispersion with financial support. Implementing the reserve system for agricultural insurance catastrophe risk and enhancing the ability of insurance institutions to cope with agricultural catastrophe risk. Increase the supply of agricultural reinsurance, expand the capacity of agricultural reinsurance, and improve the reinsurance system and sub-insurance mechanism. Reasonably define the market positioning of insurance institutions and reinsurance institutions, and clearly divide the responsibilities and obligations of the central and local governments.
(10) Clean up and standardize the agricultural insurance market. Strengthen the supervision of financial subsidy funds, deal with insurance institutions that defraud financial subsidy funds according to law, and implement joint punishment for dishonesty. We will further standardize the order of the agricultural insurance market, reduce the operating costs of agricultural insurance, increase penalties for inaccurate capital, inadequate catastrophe risk arrangements, false insurance and false claims settlement of insurance institutions, and resolutely withdraw from the agricultural insurance market in accordance with the law for insurance institutions that fail to meet the basic operating requirements, have major irregularities and major risks.
(11) Encourage exploration and development of agricultural insurance plus. We will establish and improve cooperation mechanisms between insurance agencies and departments such as disaster prediction, agriculture and rural areas, forestry and grassland, and strengthen the coordinated use of agricultural insurance compensation funds and government disaster relief funds. We will promote the linkage between agricultural insurance and financial instruments such as credit, guarantee and futures (rights), expand the pilot project of insurance + futures and explore the pilot project of order agriculture + insurance + futures (rights). Establish and improve the rural credit system, improve the credit rating of farmers through the credit enhancement function of agricultural insurance, and alleviate the problem of difficult and expensive loans for farmers. ?
IV. Strengthening the Infrastructure Construction of Agricultural Insurance
(12) Improve the formulation mechanism of insurance clauses and rates. Strengthen the research on risk zoning of agricultural insurance, construct risk maps of agricultural production, publish pure risk loss rates of agricultural insurance, study and formulate demonstration clauses of major crops, livestock, important vegetable blueberry varieties and forest grassland insurance, and provide technical support for product development and rate adjustment of insurance institutions. Establish a scientific insurance rate formulation and dynamic adjustment mechanism to realize differentiated pricing based on regional risks, and truly reflect the risk situation of agricultural production.
Thirteen. Strengthen the sharing of agricultural insurance information. Increase investment, and constantly improve the level of agricultural insurance informatization. Gradually integrate agricultural-related data and information from departments of finance, agriculture and rural areas, insurance supervision and management, forestry and grassland, and insurance institutions, dynamically grasp the relevant situation of insured farmers and agricultural production and operation organizations, and prevent fraudulent and fraudulent financial subsidies from the source.
(14) Optimizing the layout of insurance institutions. Supporting insurance institutions to establish and improve the grass-roots service system and improve insurance services. Insurance institutions operating policy-oriented agricultural insurance business shall set up branches in county-level regions. To formulate a unified national approach to Agricultural Insurance Bidding and strengthen the standardized management of insurance institutions. All localities should establish a service-oriented bidding and dynamic evaluation system for insurance institutions in line with the actual situation of the region. Agricultural mutual insurance and other insurance organizations established according to law may carry out agricultural insurance business in accordance with regulations.
(15) Perfecting risk prevention mechanism. We should strengthen the main responsibility of insurance institutions to guard against risks, adhere to prudent management, enhance risk early warning, identification and control capabilities, increase investment in prevention, and improve risk prevention and emergency response mechanisms. To urge insurance institutions to strictly abide by financial accounting rules and financial supervision requirements, strengthen solvency management, and ensure adequate risk absorption capacity. We should strengthen the corporate governance of insurance institutions, refine and improve the internal control system, and effectively prevent and resolve various risks.
5. Organizing and Implementing Work Well
(16) strengthen coordination. All regions and relevant departments should attach great importance to accelerating the high-quality development of agricultural insurance, strengthen communication and coordination, and form a working force. The Ministry of Finance, together with the Central Agricultural Office, the Ministry of Agriculture and Rural Areas, the Banking Insurance Regulatory Commission and the State Forestry and Grass Bureau, has set up a working group on agricultural insurance to coordinate planning and promote agricultural insurance. Relevant departments should work out relevant supporting measures to ensure the implementation of various policies in place. The provincial Party committees and governments shall organize the formulation of work plans, establish an agricultural insurance working group led by the financial department and participated by the agricultural and rural, insurance supervision, forestry and grassland departments, determine the financial support policies and key points of the local agricultural insurance, and comprehensively promote the agricultural insurance work.
(18) To create a good market environment. We will deepen the reform of releasing control clothing in the field of agricultural insurance and improve the system of agricultural insurance laws and regulations and policies. We will study and set up an agricultural insurance publicity, education and training program. We will play the role of self-regulatory organizations such as insurance industry associations. We will intensify supervision and inspection in the field of agricultural insurance, establish a normalized inspection mechanism, make full use of the resources of the local offices of the Banking and Insurance Regulatory Commission, strengthen insurance supervision at the grass-roots level, strictly investigate and punish violations of laws and regulations, and strictly investigate and punish those who abuse their powers, neglect their duties, favoritism and fraud, or fail to do so, strictly investigate the responsibility of relevant departments and relevant personnel, and resolutely pursue criminal responsibility in accordance with the law.