Newspaper observation: China's agricultural insurance enters a new era of high-quality development
Author: Sue Moon Source: China Financial and Economic News Published: 2019-10-31
Recently, the Ministry of Finance in conjunction with the Ministry of Agriculture and Rural Affairs, the Banking Regulatory Commission, and the Forestry and Grass Bureau jointly issued the "Guiding Opinions on Accelerating the Development of High Quality Agricultural Insurance" (hereinafter referred to as the "Guiding Opinions"). As a basic follow-up for the development of agricultural insurance in the future, its promulgation indicates that China's agricultural insurance has entered a new period of high-quality development. Experts said that the "Guiding Opinions" is the most important programmatic document since the promulgation of the "Agricultural Insurance Regulations", which specifies the core points of high-quality development of agricultural insurance and will push China's agricultural insurance development to a new stage.
Make a unified top-level design
Agricultural production and management often not only have the joy of a bumper harvest, but also exist potential risks. A powerful natural disaster and an unexpected market price fluctuation may make farmers lose all their achievements and lose all their achievements after hard work.
Insurance is the basic means of market economy risk management. Specific to agricultural insurance, on the one hand, it promoted the government's disaster relief from "administrative decision-making" "government management" to "market contract" "insurance claims"; on the other hand, the agricultural insurance premium subsidies currently implemented in China generally belong to the World Trade Organization "Green Box" measures. Since 2007, China has experimentally developed policy agricultural insurance.
According to the data previously disclosed by the China Banking Regulatory Commission, in 2018, China's agricultural insurance provided risk protection of 3.46 trillion yuan, an increase of 24.23% year-on-year; premium income was 57.265 billion yuan, an increase of 19.54% year-on-year. Report, in 2007, the above figures were 112.6 billion yuan and 5.8 billion yuan, respectively. The reporter learned from the Ministry of Finance that as of 2018, the number of agricultural insurance institutions in China has increased from the original 6 to more than 30, and 400,000 grass-roots service outlets have been established nationwide, covering basically all county-level administrative areas, more than 95% of townships and townships, and About 50% of administrative villages.
It can be seen that in the past 12 years, China's agricultural insurance has developed rapidly and its level of protection has been continuously improved. "Such a high development rate is also unique in the global agricultural insurance market." Said Guo Guozhu, a professor of insurance at the Capital University of Economics and Business.
"While achieving remarkable results, we should soberly realize that China's agricultural insurance still has a lot of room for development." A person in charge of the Finance Department of the Ministry of Finance pointed out that China's agricultural insurance protection level is still directly materialized by seeds and fertilizers. Cost is the main factor, and the cost of ensuring production has just started. Compared with the income of farmers in developed countries, the overall level of protection is still low. Compared with the demand for agricultural modernization and rural rejuvenation, there is still a considerable gap between the supply of insurance products and the services of insurance institutions.
"The" Guiding Opinions "faced the problems in the development and gave the direction and path to solve the problems," said Guoguo Zhu.
The person in charge said that the "Guiding Opinions" clarified the guiding ideology, basic principles, main goals, and safeguard measures for accelerating the high-quality development of agricultural insurance from the top-level design. Arrangements have been made in improving agricultural insurance service capabilities, optimizing agricultural insurance operating mechanisms, strengthening agricultural insurance infrastructure construction, and doing well in organizational implementation. According to the requirements of the Guiding Opinions, the development goals of China's agricultural insurance are clearer, the top-level design is more unified, financial support is stronger, local responsibilities are more clear, infrastructure is more complete, and management requirements are more stringent.
Zhang Qiao, director of the Agricultural Risk Management Research Center of the Chinese Academy of Agricultural Sciences, said that the Guiding Opinions have been refined and refined on the basis of the framework and principle provisions of the Agricultural Insurance Regulations, which meets the current internal needs of high-quality development of agricultural insurance in China. Improving service capabilities, optimizing operating mechanisms, and strengthening infrastructure construction have promoted the high-quality development of agricultural insurance from three aspects: improving product and service quality, improving industry operation efficiency, and maintaining sustainable development. The Guiding Opinions were reviewed and agreed in principle by the Eighth Meeting of the Central Committee of Comprehensive and Deepening Reform, reflecting the high importance the Party Central Committee and the State Council attach to the development of agricultural insurance. It is expected that agricultural insurance will become the cornerstone and core of China's agricultural support and protection system in the future. .
Balance the relationship between the government, insurance institutions and farmers
China's agricultural insurance mainly involves three main bodies: farmers (insurers), insurance institutions (insurers), and government departments. The Guiding Opinions make a series of regulations around improving the sense of peasants' gains and clarifying the government and market boundaries.
"The quality of agricultural insurance development is high or low mainly because farmers have a strong sense of gain." The Guiding Opinions emphasized in the basic principle of "voluntary autonomy" that "fully respect the wishes of farmers and agricultural production and management organizations, and must not force or restrict them. "Participating in agricultural insurance" has made prohibitive provisions on behaviors that may infringe the interests of farmers.
At the same time, under the overall requirements of improving agricultural insurance service capabilities, the Guiding Opinions made a series of specific deployments in enriching and expanding the connotation of agricultural insurance.
The first is to expand the coverage of agricultural insurance. Including steadily expanding the coverage of bulk agricultural insurance related to the national economy, the people's livelihood and national food security, increasing the insurance coverage of small farmers' agricultural insurance, and realizing full insurance coverage; encouraging localities to carry out advantageous and characteristic agricultural insurance according to local conditions, and gradually increasing their proportion in agricultural insurance; timely adjustment and improvement Forest and grassland insurance systems, management regulations, etc.
The second is to improve the level of agricultural insurance protection. Including the establishment of a dynamic adjustment mechanism for agricultural insurance protection levels, the expansion of agricultural disaster insurance pilots; the promotion of rice, wheat, and corn full-cost insurance and income insurance pilots;
The third is to broaden the field of agricultural insurance services. Including agricultural production facilities and equipment, farmers' short-term accidental injury insurance, etc .; the development of insurance products to meet the needs of new agricultural business entities.
The fourth is to implement measures to facilitate and benefit the people. Including fully guaranteeing the right of informed farmers and agricultural production and operation organizations to promote the popularization and standardization of agricultural insurance clauses; insurance institutions must implement the "five public" policy on agricultural benefits, underwriting, settlement results, service standards, and regulatory requirements to limit damage to Households and settlement of claims will not hesitate to make compensations or delay payment, effectively improve the efficiency of underwriting claims; encourage insurance institutions to implement the policy of no compensation and preferential treatment.
"The above-mentioned deployment will help increase the attractiveness and user satisfaction of agricultural insurance, and improve the ability of agricultural insurance services, while improving farmers' sense of security and security, while playing an important role in ensuring national food security." Zhang Qiao said.
According to the "Agricultural Insurance Regulations" and "Guiding Opinions", China's agricultural insurance implements the principles of government guidance, market operation, voluntary initiative, and coordinated advancement.
"The choice of the government and the market to participate in the development of agricultural insurance is correct and successful." Guo Guozhu said that most of the government's participation in agricultural insurance activities had previously been in principle. In practice, there are government and market boundaries in some places. Unknown, the situation of government offside and absence coexist.
The Guiding Opinions first define the government's positioning in the basic principles: "Better use of the government's guidance and promotion role, by increasing policy support, strengthening business supervision, regulating market order, and creating a good environment for the development of agricultural insurance."
"Compared with the past, the" Guiding Opinions "have more specific and specific provisions on the responsibilities of governments at all levels and relevant departments in agricultural insurance." Guoguo Zhu pointed out that including financial support policies, improving the disaster risk dispersion mechanism, strengthening Research on risk division of agricultural insurance, release of pure risk loss rates for agricultural insurance, strengthening of agricultural insurance information sharing, and strengthening of standardized management of insurance institutions.
At the same time, the "Guiding Opinions" specifically proposed that local governments at all levels do not participate in the specific operation of agricultural insurance, and should fully respect the autonomy of the insurance institutions in product development, actuarial pricing, and underwriting claims, and give necessary premium subsidies and catastrophes based on this Support for payment, provision of information and data. Grassroots government departments and related units may assist in handling agricultural insurance business in accordance with relevant regulations. "The above regulations are by far the most specific regulations on how to deal with the relationship between the government and the market when local governments participate in agricultural insurance. In order to further enhance the operability, a negative list can be listed in the future," said Guoguo Zhu.
In terms of market operation, the basic principles point out: "In line with the inherent laws of agricultural insurance development, give full play to the decisive role of the market in the allocation of resources, adhere to the demand-oriented, strengthen the leadership of innovation, and make good use of insurance institutions in agricultural insurance operations. Autonomy and creativity. "
While encouraging institutions to give play to their initiative and improve efficiency, the Guiding Opinions also make corresponding provisions for evading moral hazards. This includes strengthening the supervision of financial subsidy funds, dealing with insurance institutions that have cheated financial subsidy funds according to law, and implementing joint disciplinary measures against dishonesty.
"After clarifying what the government and insurance institutions should do and what should not be done, how to achieve cooperation between the two is also an issue that should be paid attention to. It mainly involves how to establish financial support for multi-party participation, risk sharing, and multi-level decentralized agricultural insurance disaster risks. Decentralization mechanism, etc. "Zhang Qiao said.
Fiscal Incremental Efficiency Supports Agricultural Insurance Development
"Determining the financial department as the lead department is an innovation to strengthen the top-level design this time." A person in charge of the Finance Department of the Ministry of Finance stated that at the central level, the Ministry of Finance in conjunction with the Central Agriculture Office, the Ministry of Agriculture and Rural Affairs, the Banking Insurance Regulatory Commission, and the Forestry and Grass Bureau And other departments to set up an agricultural insurance working group; at the local level, following the central practice, an agricultural insurance working group led by the financial department was established.
"This is conducive to better co-ordinating the resources of all parties, further consolidating fiscal responsibilities, coordinating the supply and demand of agricultural insurance, forming a joint effort through up-and-down linkages, and truly implementing the requirements of the" Guiding Opinions. " Means.
Financial services play a vital role in the revitalization of rural areas. The financial sector plays an important role, and agricultural insurance is no exception. According to reports, in recent years, the central government has increased its support for agricultural insurance. In 2018, the central government allocated 19.9 billion yuan in subsidies for agricultural insurance premiums and guided insurance institutions to provide 3.46 trillion yuan in risk protection for 195 million sub-farm households. The subsidy fund was enlarged by 174 times. "At present, 80% of China's agricultural insurance premium income comes from fiscal subsidies at all levels," said the person in charge.
It is understood that when it started in 2007, China took the lead in carrying out policy-based agricultural insurance pilots in Jilin, Inner Mongolia, Jiangsu, Hunan, Sichuan, and Xinjiang. The central government provided five crops, including wheat, rice, corn, cotton, and soybeans. Agricultural insurance premium subsidies. Since then, with the gradual implementation of the pilot, regional and central subsidy varieties have continued to expand and increase. As of 2018, the central government's premium subsidy categories have expanded to 16 and local financial support has independently developed more than 200 special insurance types.
"Without financial subsidies, there is no high-quality agricultural insurance for development." Wu Guozhu pointed out that the Guiding Opinions propose to increase policy support, "optimize agricultural insurance financial support policies, explore and improve agricultural insurance subsidy methods, and strengthen agricultural insurance and related financial subsidies. The "coordination of policies", including the recent implementation of the central government's implementation of awards for local advantageous agricultural insurance, have shown that the central government's efforts to support the development of agricultural insurance will not change. "I'm full of confidence in this," Wu Guozhu said.
"The implementation of the Guiding Opinions is an important task for the financial department at present and for a period of time to come." The person in charge stated that the Ministry of Finance will take the lead and take responsibility on the one hand, and work with other departments to set up an agricultural insurance working group . Guide and urge local governments to follow the central practice and set up local agricultural insurance working groups as soon as possible. On the other hand, it will continue to improve various systems, including the establishment of various agricultural reinsurance companies in China, and further improve the level of agricultural insurance informatization. Promulgated unified national agricultural insurance bidding management measures. Further improve the performance evaluation system for agricultural insurance. At the same time, increase funding support. The central government will work hard to optimize the stock, expand the increase, and improve efficiency. In accordance with the requirements of “enlarging, adding products, and raising bids”, timely and fully arrange funds to ensure that the current agricultural insurance policy achieves “willingness to guarantee everything”. On this basis, we will expand the pilot scope of agricultural disaster insurance, and study the expansion of the central government's policy of awarding supplements to local agricultural products with advantages and characteristics.
Zhang Qiao pointed out that, in addition to the financial department, agricultural and rural areas, banking and insurance supervision departments should also deploy in accordance with the "Guiding Opinions" and formulate supporting measures and implementation rules in a timely manner. Always adhere to the concept of "three rural" services, high-quality development, and systematically sort out and comprehensively summarize the expandable agricultural insurance development model. "He added.