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Article

5 Oct 2016

Author:
Coco Liu, Reuters (USA)

China: Companies launch insurance aimed to protect farmers from climate risks

"Insured crabs, tea help China's farmers avoid extreme weather losses," 3 Oct 2016

…As erratic weather has become the new norm in China, insurance policies against losses from extreme weather have emerged in a wide range of agricultural businesses…Chinese government statistics show that…natural disasters have caused annual economic losses of 200 billion yuan…a year, on average…Chinese farmers, whose harvests rely on good weather, have been among those hit the hardest…PICC Property and Casualty Co. Ltd…has rolled out 39 insurance products aimed at helping Chinese farmers handle an increase in climate shocks…Anxin Agricultural Insurance Co. Ltd…recently teamed up with Taobao…to sell insurance against crop failures caused by strong winds. Farmers can buy the insurance online and claim it based on meteorological data, which enables the company to serve farmers whose villages do not have any insurance agents…China’s new climate-related insurance services, however, often depend on heavy government subsidies. While the central government and local authorities have opened their wallets to support pilot programs, it remains unknown to which extent they can continue the financial assistance…

[Also refers to China Pacific Insurance Group Co. Ltd and Weibo.]