Farmers in China get access to parametric insurance program

The program covers 28 counties across Heilongjiang province

Swiss Re, the Sunlight Agriculture Mutual Insurance Company of China, and government of China’s Heilongjiang province have developed an insurance program to protect farmers against floods, excessive rain, drought and low temperatures.

It will cover 28 “poverty-stricken” counties in the province and will provide compensation for harm to lives and properties of farming families, as well as provide coverage for the aforementioned weather crises. The total cover for the 28 pilot areas is RMB¥2.32 billion (USD$348 million).

Read: T-Swift’s fans in China insure against her break-ups

The program will determine payouts based on triggers from satellite and meteorological data.

“It is one of the top priorities of the government bodies in China to better manage natural catastrophe risks, and it has been the desire of the insurance companies in the market to play a bigger role in this sector,” John Chen, Swiss Re president for China, said in a statement. “We are pleased to bridge the cooperation with an innovative solution and would look forward to replicating the solutions for other provinces in China.”

Read: China extends limit on overseas insurance purchases to Visa, MasterCard

A TC Media site,
Business Solutions

TC Media

Transcontinental Media G.P
1110 René-Lévesque Bldv W.
Montréal, QC H3B 4X9
(514) 392-9000