Core Insights - Agricultural insurance serves as a financial tool for disaster prevention and mitigation in agriculture, but faces challenges such as low participation rates among farmers and limited profitability for insurance companies [1][2][3] Summary by Category Agricultural Insurance Development - Since the reintroduction of agricultural insurance in 2004, government support has increased significantly, with central fiscal subsidies rising from 1 billion yuan in 2007 to 54.7 billion yuan in 2024, leading to 152.1 billion yuan in premium income and risk coverage for over 147 million households [2][3] - The structure of premium subsidies shows that farmers only contribute about 20% of the total premiums, with central, provincial, and municipal fiscal contributions accounting for 45%-50%, 25%, and 5%-10% respectively [2] Policy Support - The emphasis on "developing agricultural insurance" has been consistent in central government documents for the past 20 years, with recent policies focusing on expanding coverage and encouraging local development of specialty agricultural insurance [3][5] - Various regulations have been established to clarify subsidy policies, insurance product innovation, and service standards, but challenges remain due to information gaps and low digital literacy among farmers [3][5] Challenges in Agricultural Insurance - There is a mismatch in supply and demand for agricultural insurance products, with many specialty insurance products having low participation rates, such as a mere 0.13% in Nanchang for beef cattle insurance [5][6] - Data flow issues hinder effective risk management, with a lack of standardized databases and information sharing among insurance companies and government agencies [6][7] - The precision of insurance coverage is inadequate, with long claims processing times and inefficient communication methods contributing to low farmer engagement [7][8] Recommendations for Improvement - Strengthening the flow of supply and demand information is crucial, with suggestions for a unified national agricultural insurance information platform to enhance data sharing and product offerings [9][10] - Promoting a collaborative approach between insurance and agricultural production sectors, including financial incentives for regions that meet insurance participation targets [10] - Implementing measures to improve claims efficiency, such as revising regulations to impose penalties for delayed payments and establishing emergency funding mechanisms for disaster situations [10]