The Ministry of Finance has issued a notice concerning the selection and management of entities writing policy-based agricultural insurance business and working with the country's state-backed agricultural reinsurer.
The Insurance Association of China (IAC) has released insurance model clauses for rice, wheat and corn, for policies covering the costs of the crops. This is the first time that the association has released model clauses for agricultural insurance policies.
Around the world, 1.2bn people live in areas where agriculture is severely affected by water shortages and scarcity, and nearly half of them live in South Asia, a recent United Nations report said.
The Indian non-life industry reported a 7% y-o-y growth in premiums, excluding crop, in October 2020 which is marginally lower than 10-11% y-o-y growth over the past two months.
Agriculture deserves all the joint efforts from relevant stakeholders to ensure that food security is sustained, says Mr Clifford Ochieng, chairman of the Association of Kenya Professional Insurance Agents (AKPIA).
India could see new reinsurers entering its state-sponsored agricultural insurance market if costs were driven down for the local insurers, who have previously borne heavy administrative and operating costs, according to Mr Max Carter, CEO of Lloyd's broker New Dawn Risk.
Motor insurance premiums in India declined 2% y-o-y in September 2020 which is down 4% y-o-y in the second quarter of FY21 compared to 24% y-o-y decline in the first quarter of FY21.
China is on the way to enhancing its agricultural reinsurance business with the licensing in August 2020 of state owned China Agricultural Reinsurance Company.
Crop insurance premiums declined in September this year after recording positive growth in the previous months.
China Agricultural Reinsurance Co held its inaugural shareholders' meeting in Beijing on 28 September. The new company's main function is to redistribute Nat CAT risk faced in the agricultural sector and to build and manage a national agricultural disaster fund.