The China Banking and Insurance Regulatory Commission, together with the Ministry of Finance and the Ministry of Agriculture and Rural Affairs, issued a joint notice setting out coordinated requirements to promote “high-quality development” of pig insurance, with a focus on improving underwriting and claims accuracy, strengthening the sustainability of products and pricing, and tightening market conduct oversight. The release notes pig insurance is the largest agricultural insurance line in China, representing about one-fifth of agricultural insurance premium volume and providing more than CNY 600 billion in annual risk protection. The notice requires a joint meeting mechanism and pushes “insurance-disposal linkage” to be moved online, with a phased goal of end-to-end data connectivity across breeding, harmless disposal and insurers’ underwriting and claims processes, supported by cross-department data sharing and verification. It also calls for improved product supply and periodic premium rate adjustments, with a rate adjustment cycle not exceeding three years, alongside a mechanism for rates to rise or fall based on farmers’ management and risk. On claims processes, harmless disposal facilities must dispose of dead pigs within 48 hours of receipt and issue certification to support faster claims handling. Market order measures include stronger supervision and heavier penalties for serious illegal or non-compliant conduct, including the potential cancellation of an insurer’s agricultural insurance operating qualification and selection qualification, while allowing preferential underwriting terms for farms with good integrity records.

Original source View in tracker