Resource information
This report explains why agricultural
insurance is expensive to deliver to small farm households,
details risk assessment in four provinces, and recommends
China put more resources in developing products that are
more suited to an agricultural economy that is dominated by
small farm households. The report discusses the important
role of government in supporting the legal and regulatory
environment, access to data for new product development,
risk sharing, and broader education of all stakeholders
about the benefits of agricultural insurance. It also
explains why this form of subsidy could provide improved
incentives versus a direct subsidy for farmer premium. The
report concludes with principle recommendations involving
scalable product solutions, risk financing strategy,
intuitional capacity building and technical assistance,
legal and regulatory framework, and government support and
public subsidies.
