PICC Property and Casualty Company Limited (PICC P&C) insurance ensures a more secure rice harvesting season.

Agricultural insurance can effectively mitigate risks in agricultural production and operations, safeguarding national food security. It's worth noting that the Resolution of the Central Committee of the Communist Party of China (CPC) on Further Deepening Reform Comprehensively to Advance Chinese Modernization, released on July 21, 2024, mentions the word "insurance" as many as 13 times. Additionally, the section titled "Promoting Integrated Urban-Rural Development" emphasizes "improving supporting systems to strengthen agriculture, benefit farmers and enrich rural areas," noting that China will "optimize the system of agricultural subsidy policies and develop multi-tiered agricultural insurance schemes."

In the 1980s, China began piloting agricultural insurance. However, due to high costs, low returns and significant risks, coupled with the lack of specialized financial subsidies and full reliance on market mechanisms, its development was slow. In 2007, the central government accelerated its development by launching a pilot program for agricultural insurance premium subsidies. Through the collective efforts of various stakeholders, China has achieved in just over a decade what took other countries decades. Today, a comprehensive nationwide agricultural production risk protection system has been established, covering major bulk agricultural products and regional agricultural specialties. This system has become a vital policy tool for strengthening agriculture, benefiting farmers and enriching rural areas.

Government support for grain farmers

In 2024, the No. 1 Central Document called for expanding the implementation of full-cost insurance and planting income insurance policies to achieve nationwide coverage for the three primary food crops: rice, wheat and corn. This is a significant matter for the country and, more importantly, a top priority for the agricultural sector.

According to the Ministry of Finance, these three primary food crops account for approximately 90% of China's total grain output and 80% of its total grain planting area. Therefore, expanding insurance coverage for these crops will greatly benefit Chinese farmers.

On May 21, 2024, the Ministry of Finance, the Ministry of Agriculture and Rural Affairs, and the National Financial Regulatory Administration jointly issued a notice mandating the full nationwide implementation of these policies for rice, wheat and corn starting in 2024.

"I've been farming for more than 30 years, starting with just my own land and later contracting additional plots. Now, I farm about 7 hectares, growing wheat and corn across two seasons a year," said Sun Wenxue.

This weathered but energetic farmer, now in his 60s, is from Shouguang, east China's Shandong Province. A veteran grain farmer, Sun has witnessed firsthand the evolution of agricultural insurance in China.