Agricultural insurance in China saw a slowdown in premium growth, increasing by only 6% year-over-year in the first half of 2024, with some provinces seeing declines of 20-30%.
In some provinces, such as Xinjiang, Guangdong, Jilin, and Yunnan, the premium volume decreased by approximately 20% to even 30% year-over-year, reported Caixin Global.
Agricultural insurance has consistently been a stable growth sector within the property insurance industry. Compared to the auto insurance market, which has limited growth potential and intense market competition, and credit guarantee insurance, which carries high risks and loss ratios, agricultural insurance not only achieves profitability on the underwriting side but also boasts high premium growth rates, maintaining a year-on-year increase of around 20% for over a decade.
Although the agricultural insurance situation varies by province and the reasons for the slowdown in agricultural insurance premium growth also differ, many industry insiders point out that an underlying common factor is the financial pressure faced by local governments.
To resolve this, experts suggest reducing county-level subsidies and refining financial management to ensure continued support for key agricultural areas amidst tight budgets.