Ministry of Finance: Strengthen the application of technology to promote agricultural insurance in the direction of digitalization, intelligence and standardization

The Zhitong Finance App learned that relevant officials of the Ministry of Finance mentioned in response to reporters' questions on the “Implementation Plan on Accelerating the High-Quality Development of Agricultural Insurance” that strengthening the application of technology is an important support for speeding up the high-quality development process of agricultural insurance and improving the level of refined management of agricultural insurance. The “Implementation Plan” proposes to encourage insurance institutions to make good use of tools such as remote sensing, drones, and the Internet of Things, to actively promote the application of new technologies such as big data, artificial intelligence, blockchain, and cloud computing in the field of agricultural insurance, and to promote the deep integration of modern information technology with business aspects such as underwriting, inspection, investigation, loss determination, and claims settlement. On this basis, it is proposed to formulate standards and specifications for the application of agricultural insurance technology to promote agricultural insurance in the direction of digitalization, intelligence, and standardization, so that data can run more and farmers run fewer errands.

The original text is as follows:

Relevant Ministry of Finance officials answered questions from reporters on the “Implementation Plan on Accelerating the High-Quality Development of Agricultural Insurance”

Following review and approval by the Central Committee on Comprehensive and Deepening Reform, and with the approval of the State Council, the Ministry of Finance, together with the Ministry of Agriculture and Rural Affairs, the General Administration of Financial Supervision, and the State Forestry and Grass Administration, recently jointly issued the “Implementation Plan on Accelerating the High-Quality Development of Agricultural Insurance” (Finance (2026) No. 88, hereinafter referred to as the “Implementation Plan”). Recently, relevant officials in charge of the Ministry of Finance answered questions from reporters about the “Implementation Plan”.

1. Please introduce the main background of the introduction of the “Implementation Plan”?

Agricultural insurance is an important financial policy to benefit farmers. It plays an important role in stabilizing farmers' income, supporting comprehensive rural revitalization, and safeguarding the country's food security. Since the implementation of the central financial administration's agricultural insurance premium subsidy policy in 2007, China's agricultural insurance has gone through stages of pilot initiation, rapid expansion, and upgrading. In particular, after the Central Committee on Comprehensive and Deepening Reform reviewed and approved the “Guiding Opinions on Accelerating the High-Quality Development of Agricultural Insurance” in 2019, China's agricultural insurance has entered a stage of high-quality development. The four departments have jointly issued the “Implementation Plan”. The main background is:

First, the Party Central Committee and the State Council attach great importance to agricultural insurance work. General Secretary Xi Jinping has given important instructions on agricultural insurance work many times, stressing that agricultural insurance must be done well, and that the government should support farmers to participate in the insurance. The Third Plenary Session of the 20th CPC Central Committee called for the development of multi-level agricultural insurance. Central Committee Document No. 1 lays out agricultural insurance work for 23 consecutive years. The 2026 government work report proposed formulating measures to promote the development of agricultural insurance. In the year of the beginning of the “15th Five-Year Plan”, the “Implementation Plan” was introduced as a concrete measure to implement central deployment requirements, promote the quality and efficiency of agricultural insurance, and strengthen the strategy of serving a strong agricultural nation.

Second, China's agricultural insurance practices have accumulated mature experience. In recent years, the Ministry of Finance has continuously increased its support for the development of agricultural insurance, supporting the growth of agricultural insurance premiums in China from 5.2 billion yuan in 2007 to over 155 billion yuan in 2025. Currently, agricultural insurance in China can provide risk protection of more than 5 trillion yuan to hundreds of millions of sub-farmers every year, benefiting large agricultural products such as the three major grain crops, oil crops, natural rubber, cotton, pigs, dairy cows, forests, etc., and hundreds of agricultural products with local advantages and characteristics, and has embarked on a path of agricultural insurance development with Chinese characteristics. The “Implementation Plan” is a summary and refinement of China's agricultural insurance development experience in the past 20 years.

Third, the vast majority of farmers' demand for risk protection is growing. China's grain production has continuously stabilized at more than 1.4 trillion kg. Agricultural operations are accelerating towards large-scale, intensive and industrialization, and comprehensive agricultural production capacity continues to increase. Agricultural insurance policy tools need to be better applied to adapt to the new situation of agricultural and rural development and meet the new needs of agricultural production and management entities. Based on China's agricultural development stage and actual needs, the Ministry of Finance has studied and formulated the “Implementation Plan” with relevant parties after extensive research and verification, to lead the healthy and sustainable development of agricultural insurance in China.

2. What goals to guide the development of the industry are clarified in the “Implementation Plan”?

In order to promote more inclusive agricultural insurance policies, more balanced regional development, and continuous improvement in the quality and efficiency of guarantees, the current “Implementation Plan” clarifies the development goals for the next phase: by 2030, a multi-level agricultural insurance system that meets farmers' risk protection needs, is compatible with modern agricultural development, and has a division of labor between central and local authorities. Overall, it will reach the international advanced level, and achieve a win-win pattern with efficient subsidies, guaranteed industries, affordable benefits for farmers, and sustainable institutions.

The guidance document issued in 2019 proposed phased targets such as agricultural insurance depth of 1%, density of 500 yuan/person, and insurance coverage of 70% or more for the three major food crops by 2022. On this basis, the “Implementation Plan” further clarifies the following development goals:

The first is the “depth of agricultural insurance,” that is, the ratio of agricultural insurance premiums to the value added of the primary sector, reflecting the contribution of agricultural insurance to rural economic development, which will reach 1.9% by 2030.

The second is “agricultural insurance density,” that is, the ratio of agricultural insurance premiums to the number of people employed in the primary sector, reflecting the degree of agricultural insurance coverage per capita, which will reach 1,200 yuan/person by 2030.

The third is “agricultural insurance technology investment intensity”, that is, the ratio of agricultural insurance institutions' investment in scientific and technological innovation to agricultural insurance premiums, reflecting the level of application of scientific and technological innovation in the agricultural insurance industry, which will reach 1% by 2030. Among them, agricultural insurance science and technology innovation investment mainly includes agricultural insurance technology personnel expenses, science and technology service expenses, science and technology intangible assets, and fixed assets.

Fourth is the “insurance coverage rate for the three major food crops”. For the three major food crops related to the national economy, people's livelihood and food security, the agricultural insurance coverage rate has stabilized at around 90% nationwide, and each province has set relevant targets based on actual conditions. At the same time, raise the level of coverage of agricultural insurance with local advantages and characteristics for characteristic agricultural industries, and give better play to the role of enriching farmers and strengthening agriculture. The fifth is the “comprehensive cost rate for agricultural insurance,” which emphasizes that it must not be higher than 20% to guide agricultural insurance underwriters to effectively reduce costs and increase efficiency, and use more resources for risk protection and claims services.

3. Please briefly introduce the main contents of the “Implementation Plan”?

The “Implementation Plan” consists of six parts and proposes nearly 100 measures. The main contents are summarized as follows:

The first is to clarify the general requirements. Fully implement General Secretary Xi Jinping's important remarks on the “three rural areas” work, give full play to the important role of agricultural insurance in the “trinity” agricultural support policy system of prices, subsidies, and insurance, and clarify the main goals and core quantitative indicators for agricultural insurance development.

The second is to focus on development priorities. Adhere to joint promotion by the central government and local authorities, division of labor and responsibility between departments, and improve the multi-level agricultural insurance system. In terms of bulk agricultural products, risk protection for agricultural products such as grain, cotton, oil, sugar, glue, etc., promote the development of insurance standards for the farming industry such as pigs, dairy cows, yaks, Tibetan sheep, etc.; in terms of specialty agricultural products, actively develop specialty agricultural product insurance closely related to the lives of ordinary people, such as vegetables, fruits, beef cattle, sheep, poultry, fishery, and the underforest economy.

The third is to improve the operation mechanism. Optimize and improve underwriting management, strengthen information exchange among departments and insurance institutions such as finance, development reform, agriculture and rural areas, insurance supervision, forestry and grassland, etc., and share agricultural production and operation data such as agricultural (forest) land rights, circulation, target price subsidy area, agricultural product cost surveys, livestock and poultry storage volume, and harmless treatment of sick and dead pigs. At the same time, it is required to formulate operational standards for agricultural insurance such as accurate underwriting, loss investigation and settlement, etc., and to put forward requirements in areas such as strengthening financial subsidy management, carrying out risk reduction management, and improving supervision and management mechanisms.

Fourth, consolidate the foundation for development. Increase investment and application of agricultural insurance technology, continue to strengthen national agricultural insurance data informatization support, promote the construction of relevant systems and platforms, and carry out insurance risk zoning work for important agricultural products such as the three major food crops and major livestock products. Strengthen the selection and management of insurers, and determine agricultural insurance underwriters on the premise of service capacity and risk control ability.

The fifth is to spread the risk of major disasters. Direct insurance, promote the improvement of disaster risk reserve management, scientifically set calculation ratios and trigger standards, and better play the role of disaster risk reserves. On the insurance side, promote the combination of agreed reinsurance and market-based reinsurance, improve the agricultural reinsurance system, improve the agreed reinsurance mechanism, and optimize cataclysm overcompensation coverage. Research the establishment of an agricultural insurance disaster risk fund to improve the disaster risk distribution chain.

The sixth is to do a good job in organization and implementation. All regions and relevant departments should form joint efforts to give full play to the role of agricultural insurance working groups to better meet the risk protection needs of the “three rural” entities. Among them, people's governments at the provincial level are responsible for promoting agricultural insurance planning and development, resource coordination, and policy publicity in an integrated manner; all relevant departments carry out tasks such as policy design, funding arrangement, supervision and management according to the division of responsibilities; and insurance institutions effectively improve the quality and efficiency of underwriting and claims services.

4. What innovative initiatives are proposed in the “Implementation Plan”?

Agricultural insurance concerns farmers' interests, rural revitalization, and food security. It is an important institutional arrangement in the “three rural areas.” The “Implementation Plan” introduces a series of groundbreaking and forward-looking innovative initiatives in underwriting claims, risk management, product service, technology application, and operation mechanisms, which are reflected in the following aspects:

The first is to focus on accuracy and optimize the underwriting claims chain. Accurate underwriting is the prerequisite and foundation for accurate claims settlement and accurate subsidies. On the underwriting side, in order to promote the implementation of insurance policies to households, certificates to households, and protection to households, the “Implementation Plan” proposed the implementation of “one household, one policy” for the first time at the policy level, that is, individual farmers mainly issue insurance policies to promote the exchange, sharing and cross-verification of agricultural insurance underwriting data with agricultural production and operation data, and consolidate the authenticity of underwriting information from the source. On the claim settlement side, work procedures and standards for investigation, sampling, and loss determination are further refined. In terms of specific operations, regions that are in a position to do so can set up agricultural insurance expert assessment teams and loss approval committees on a city or county basis to enhance professionalism and credibility.

Second, place equal emphasis on loss prevention and move the risk management threshold forward. Doing a good job in risk reduction is an effective measure to reduce farmers' financial losses after a disaster. Based on industry exploration and practice, the “Implementation Plan” was introduced this time to further strengthen risk reduction work arrangements and require enhanced integrated service capabilities for “pre-disaster prevention and mitigation, in-event disaster relief and mitigation, and timely compensation after the fact”. Insurance institutions are encouraged to cooperate with professional forces in agriculture and rural areas, forestry and grassland, meteorology, etc., to establish normalized mechanisms such as early warning and investigation, emergency disaster prevention, and quick claims settlement, etc., to extend “prevention” work to before a disaster occurs, not only “lose money in a timely manner”, but also “take the initiative” to establish a closed loop risk management chain to improve the effectiveness of comprehensive prevention and control of agricultural disasters.

The third is diversified supply to enrich insurance products and services. Agricultural production varies from place to place, risks vary from product to product, region to region, and products and services also require such measures. In terms of product supply, efforts are being made to improve the multi-level guarantee system of “policy insurance+commercial insurance” and “basic insurance+supplementary insurance”, encouraging the development of innovative insurance types such as agrometeorological index insurance according to local conditions, and developing comprehensive insurance protection plans to facilitate farmers' insurance coverage. In terms of the service sector, broaden the scope of insurance services, encourage the development of agricultural infrastructure insurance for greenhouses, farm houses, agricultural machinery, warehouses, etc., explore the inclusion of agricultural product processing, storage, transportation, quality and safety, and high-standard farmland management in the scope of insurance services, promote extension to green agricultural development, smart agriculture, ethnic villages, etc., and build risk barriers for the modernization of agriculture and rural areas. Furthermore, promote the “agricultural insurance +” model, deepen the collaboration between agricultural insurance and financial instruments such as credit, guarantees, and futures, and guide the flow of more financial resources to agriculture and rural areas.

Fourth, technology empowers to promote business transformation and upgrading. Strengthening the application of technology is an important support for speeding up the high-quality development process of agricultural insurance and improving the level of refined management of agricultural insurance. The “Implementation Plan” proposes to encourage insurance institutions to make good use of tools such as remote sensing, drones, and the Internet of Things, to actively promote the application of new technologies such as big data, artificial intelligence, blockchain, and cloud computing in the field of agricultural insurance, and to promote the deep integration of modern information technology with business aspects such as underwriting, inspection, investigation, loss determination, and claims settlement. On this basis, it is proposed to formulate standards and specifications for the application of agricultural insurance technology to promote agricultural insurance in the direction of digitalization, intelligence, and standardization, so that data can run more and farmers run fewer errands.

The fifth is to improve quality and efficiency, and improve operation management mechanisms. In terms of grass-roots services, the actual situation of agricultural production in China is fully taken into account, and insurance institutions are allowed to set up co-insurance agents as needed to facilitate services such as underwriting claims, and open up the “last mile” of agricultural insurance services to the public. In terms of institutional management, adhere to the working principles of moderate competition and dynamic adjustment, carefully evaluate the service capabilities of insurance institutions, strengthen management of operating qualifications, and optimize entry and exit mechanisms. In terms of fund management, all regions are encouraged to implement models such as “provincial-to-provincial” settlement by provincial finance departments and provincial branches of insurance institutions to optimize fund disbursement methods and improve the efficiency of the use of funds.

5. What are the next steps to consider in promoting further improving the quality and efficiency of agricultural insurance?

Accelerating the high-quality development of agricultural insurance is a systematic project. In recent years, the quantity and quality of agricultural insurance in China has risen sharply, the institutional system has been continuously improved, and the scope of services has been continuously improved. The grass-roots network has been continuously improved, and the scope of services has been continuously expanded. It has formed a governance pattern where each party carries out its duties, joint management, and efficient collaboration, gradually shifting from a stage of rapid growth to a stage of high-quality and efficient development.

In the next step, we will adhere to the working principles of government guidance, market operation, autonomy, collaborative promotion, reform and innovation, etc., to promote the quality, efficiency, transformation and upgrading of agricultural insurance in China, focusing on the following aspects:

The first is to continue to implement policies and refine “construction plans.” The “Implementation Plan” is a comprehensive policy document guiding the high-quality development of agricultural insurance in China at present and in the coming period. The Ministry of Finance will work with relevant parties to refine specific measures, clarify the division of responsibilities, and promote the implementation of various tasks to achieve results in an integrated manner. At the same time, all regions are encouraged to give full play to their subjective activism, formulate policies and measures within their jurisdiction in line with the actual situation and farmers' needs, and strengthen the collaborative use of insurance compensation and government disaster relief funds.

The second is to continuously enhance security capabilities and tighten the “safety net.” Establish a multi-level, diversified, and wide-coverage agricultural insurance guarantee system to enhance the resilience of China's agriculture in dealing with extreme disasters. On the one hand, full cost insurance and planting income insurance have been steadily implemented to support the development of insurance for bulk agricultural products. On the one hand, implement the concept of big agriculture and big food, and support the development of agricultural product insurance with local advantages and characteristics. At the same time, efforts are being made to strengthen the role of insurance in risk sharing, loss compensation, financing and credit enhancement.

The third is to continue to improve service levels and hand over a “warm umbrella”. Consolidate the main responsibilities of insurers and place improving service quality and efficiency in the most prominent position. Strengthen the construction of service outlets, improve the level of business operations, simplify procedures, optimize processes, and receive compensation to households. Adopt methods that the vast majority of farmers are happy to hear, and carry out work such as policy publicity and interpretation of regulations in an easy-to-understand manner, so as to bring services to the fields and the hearts of farmers.

Fourth, continue to consolidate the foundation for development and lay a “solid foundation”. Focus on strengthening agricultural insurance informatization support, unifying data standards, strengthening information sharing, and making agriculture-related data “taken by agriculture and used by agriculture.” Promote agricultural insurance risk zoning, improve the dynamic rate adjustment mechanism, and improve the scientific and accurate risk pricing. Adapt to the development trend and needs of agricultural insurance, and further strengthen the rule of law in agricultural insurance.

Fifth, continue to strengthen departmental collaboration and draw a “concentric circle.” The financial department, together with relevant parties, focuses on agricultural insurance policy formulation and system design, improving and perfecting institutional mechanisms, strengthening coordination of relevant resources, and making financial arrangements and performance evaluations. The agricultural, rural, forestry and grassland departments are based on their respective functions to do a good job of industrial policy research, production and operation data sharing, and guiding the investigation of losses. The insurance supervisory authority is responsible for supervising and managing operating conditions, product development, rate determination, etc. in the agricultural insurance business, and standardizes underwriting claims.

The sixth is to continue to strengthen exchanges and cooperation to build an “ecosystem.” Agricultural insurance is an internationally accepted method of risk diversification in agriculture. We will continue to gather the strength and wisdom of departments, market agencies, experts and scholars, etc., to deepen cross-regional and cross-industry collaboration, seize development opportunities, optimize agricultural insurance supply, strengthen product and model innovation, and form more practical results. Actively carry out international exchanges, cooperation and mutual learning, tell the story of agricultural insurance in China, actively integrate into the global agricultural risk management system, and contribute more of China's strength to sustainable agricultural development.

This article was selected from the “Ministry of Finance” official account, Zhitong Finance Editor: Liu Jiayin.