Shandong lacks agriculture insurance
By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2006-06-28 09:06
Recorded agriculture insurance premiums in Shandong were only 326,100 yuan
(US$40,705.51) in the first quarter of this year, down 3.85 percent from the
same period last year and comprising only 0.02 percent of total property
premiums in the province, according to statistics from the Shandong Insurance
Regulatory Bureau.
The high risk of agriculture insurance results in few insurers. PICC Property
and Casualty (PICC P&C) began offering insurance in 1982. Its annual
premiums have decreased since from over 100 million yuan (US$12.48 million) to
less than ten million yuan (US$1.25 million) with an over 117 percent average
loss ratio.
Crop insurance expenses account for two to 15 percent of PICC P&C's total
value, far higher than that of other property insurance, but its customers are
mostly poor farmers who can't afford high expenses.
......
The full text is available in the June Issue of China Insurance.
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