A collaborative approach between the market and the Government resulted in an effective agricultural insurance scheme that addressed the demands of China's major agricultural regions, restoring a valuable policy instrument for the Government to promote sustainable development in the agricultural sector.
— China —
agricultural. insurance. review.
Rebuilding the Backbone of Agriculture: Transforming Insurance in Henan province China to Secure a Sustainable Future
"At the very heart of agriculture is the drive to feed the world." - Ben Potter
Challenge
Our expert's task was to evaluate the current state of agriculture insurance in Henan province in China and offer recommendations for future improvements based on international best practices adapted to the local context. Henan is the biggest inland province in China, located in the central plain. It is one of the less developed regions in China, with agriculture as a critical sector. Wheat is its main crop regarding area and output, and Henan leads the wheat production among the Chinese provinces.
Strategy
The agricultural sector in Henan province, China, faced a significant challenge in securing insurance coverage for its crops and livestock. Since 1982, the Government has subsidized the insurance premiums for farmers, but this proved unsustainable and inefficient. Moreover, the private insurance companies that entered the market lost interest in offering agricultural insurance products due to their low profitability. To address this situation, our expert collaborated with national experts to conduct a comprehensive review of Henan's agricultural insurance system and propose recommendations for improving its structure and performance. The review also included providing training and advice to local experts and farmers on using agricultural insurance effectively and efficiently.