China Taibao < / p> “Agriculture is always a sunrise industry. As long as human beings exist, the primary industry is always full of vitality. Why did we fully enter the agricultural insurance market 5 years ago? It is the unlimited development space in the primary industry.” Chairman of China Pacific Insurance Gu Yue said this recently in an exclusive interview with Surging News.
From 2007 to 2019, agricultural insurance premium income increased from 5.33 billion yuan to 67.25 billion yuan, an average annual increase of 23.52%; the provision of risk protection increased from 112.6 billion yuan to 3.6 trillion yuan; serving farmers increased from 49.81 million households to 180 million households. China has become the world’s second largest agricultural insurance market after the United States.
Relatively speaking, CPIC is a “latecomer”. Since 2015, CPIC Property & Casualty has been fully engaged in agricultural insurance operations. At that time, there were already several insurance companies with rich management experience in the market. They had strong business capabilities, high market share, and great voice. However, after five years of development, CPIC’s agricultural insurance business revenue increased from an initial 1.155 billion yuan to 5.975 billion yuan in 2019, ranking third in the industry.
Gu Yue told Peng Mei News that in recent years, China Pacific Insurance ’s agricultural insurance market share has increased from 6% to 10%, with an average annual increase of more than 1.3 percentage points. It is not easy.
According to his disclosure, CPIC P & C will start building a “Sannong Insurance Service System” this year to create a product covering agriculture, forestry, animal husbandry and fishery, agricultural product processing, circulation, and agricultural production The second industry, as well as the comprehensive products and service systems of the tertiary industry such as rural finance, health care, culture and entertainment (farmhouse), deepen the implementation of insurance services “three rural”.
In the first quarter, CPIC ’s agricultural insurance premium growth rate exceeded 70%: it was not a current job, but a long-term accumulation
In the first quarter, CPIC ’s agricultural insurance premium growth rate exceeded 70%: it was not a current job, but a long-term accumulation
In the first quarter of 2020, CPIC P & C Insurance The insurance business revenue was 39.044 billion yuan, a year-on-year increase of 10.4%. Among them, auto insurance business revenue was 23.524 billion yuan, a year-on-year decrease of 0.5%; agricultural insurance and other non-auto insurance business revenue was 15.52 billion yuan, a year-on-year increase of 32.5%.
According to Gu Yue, CPIC Agricultural Insurance ’s premium growth rate in the first quarter of this year reached 73%, 52 percentage points higher than the industry, the market share increased 3.6 percentage points to 13.3%, and the incremental premium exceeded 10 100 million yuan, contributing 29% of the incremental premium to the company.
“The rapid growth of agricultural insurance embodies a result of our five years of transformation and development. The development of CPIC agricultural insurance is not simply a quantitative development, but more The improvement of quality. “Gu Yue pointed out that, combined with the characteristics of agricultural insurance, CPIC Property and Casualty has rarely emphasized the beginning of the field of agricultural insurance. But I didn’t expect it to develop so well. This is actually a kind of accumulation to some extent, not some work in the current period, but a long-term accumulation.
Affected by the new coronary pneumonia epidemic, many businesses of insurance institutions are difficult to start, and the traditional field operation mode of agricultural insurance has also been greatly challenged. Gu Yue told Peng Mei News that during the epidemic period, CPIC P & C Insurance simplified the handling process, and also simplified the handling process for underwriting through WeChat, short video and other online sales promotion programs. In areas severely affected by the new crown epidemic, on the basis of ensuring the authenticity of the farmers and agricultural production organizations’ willingness to insure, and actively obtaining regulatory permission, they can temporarily suspend the submission of underwriting materials and complete the procedures after the outbreak.
“Agricultural insurance is a national policy to support agriculture, benefit farmers and benefit people, and compliant operation is an important prerequisite.” Gu Yue said that CPIC P & C had done well in advance after the epidemic. The underwriting file improvement plan requires a detailed registration and supplementary registration form to clarify the information about the lack of information and the timeliness of each policy. After the epidemic is over, strict supervision and implementation of file improvement will be implemented to ensure compliance.
Now agricultural insurance is more focused on the field of agricultural production, but it has not expanded to the entire agricultural production chain.
Now agricultural insurance is more focused on the field of agricultural production, but it has not expanded to the entire agricultural production chain.
Gu Yue believes that, in fact, it has surpassed the general needs of traditional agricultural insurance. CPIC P & C has developed many innovative tools, for example, a drone brigade with more than 400 drones can meet the needs of different scenarios. But from the perspective of future development, there are indeed two new trends.
First of all, agriculture now becomes a “dual subject”, that is, a new type of agricultural production and operation subject and farmers. In the past, agricultural insurance was more targeted at farmers, so it did not pay much attention to another type of intensive production and operation of new agricultural production and management entities. It is for this reason that insurance institutions need to carry out some customized productions that are different from traditional operation methods.
In October 2019, the four ministries and commissions including the Ministry of Finance and the Ministry of Agriculture and Rural Affairs jointly issued the “Guiding Opinions on Accelerating the High-Quality Development of Agricultural Insurance” (hereinafter referred to as “Opinions”). Among them, it is clearly proposed to promote the linkage of agricultural insurance with financial instruments such as credit, guarantee, and futures (rights), expand the pilot of “insurance + futures”, and explore the pilot of “order agriculture + insurance + futures (rights)”. Establish and improve the rural credit system, improve the credit rating of farmers through the credit-increasing function of agricultural insurance, and alleviate the problem of “difficult loans and expensive loans” for farmers.
Second, from the perspective of agricultural insurance, the current agricultural insurance is more focused on the field of agricultural production, and does not extend to the entire chain of agricultural production. After the emergence of a new type of agricultural production and management entity, his demand is no longer limited to agricultural production. There is a huge insurance demand in agricultural finance and the circulation and sales of agricultural products. For example, to finance, to control the risks of counterparties, these are What farmers haven’t encountered before is also not involved in traditional agricultural insurance. This change in the industrial chain has also prompted insurance institutions to innovate.
“So now we are also studying how to match the insurance related to the expansion of the agricultural value chain and industrial chain.” Gu Yue said that for insurance companies, Agricultural insurance is no longer a pure agricultural insurance category, and should be explored along the entire chain of agricultural production.
It is not difficult to find that as a risk management model, “insurance + futures” is increasingly used in the field of agricultural insurance.
Gu Yue believes that “insurance + futures” is more focused on risk management, but “insurance + credit” is more about the derivatives of financial instruments. The difficulties and challenges faced by the latter are mainly due to the fact that banks and insurance have not yet reached a complete consensus on credit risk. In particular, banks have some differences in the perception of credit risk in rural areas from insurance institutions.