Beijing Banking and Insurance Regulatory Bureau further clarifies the operating conditions of agricultural insurance business

"Food is the most important thing for the people". With the coming of the rainy season, agricultural insurance to ensure food has become more and more important. On July 9, the Beijing Banking and Insurance Regulatory Bureau issued the Notice on Further Clarifying the Operating Conditions of Agricultural Insurance Business within the Jurisdiction (hereinafter referred to as the Notice), setting a "threshold" for insurance companies and their branches to operate agricultural insurance business in Beijing in terms of institutional setting and specialist allocation. Insiders in the industry believe that this document further clarifies the specific conditions for operating agricultural insurance business in the Beijing market on the basis of adhering to the principle of moderate competition, the principle of steady progress, and the principle of innovative development, which will help ensure the high-quality development of agricultural insurance business.

According to the Notice, in addition to complying with relevant laws and regulations and being approved by the head office to carry out agricultural insurance business, provincial branches of insurance companies operating agricultural insurance business in Beijing should also have a sound agricultural insurance management system, develop underwriting claims practice specifications, disaster emergency plans, complaint return visit management system, expense management system, etc, It is timely revised according to regulatory policies and business conditions, and has a sound internal control management mechanism, and near There has been no major administrative punishment for agricultural insurance business within three years.

In terms of institutional setup and staffing, the Notice stipulates that it has a special agricultural insurance management department, with more than 5 full-time professionals in agriculture, insurance and other related disciplines, and has strong insurance underwriting and claims and risk management capabilities; Special agricultural insurance information system, professional standard inspection equipment independent The office facilities, such as transportation vehicles, can meet the actual needs of agricultural insurance management and services, and establish a grass-roots service network of agricultural insurance suitable for the business scale by setting up township and village service stations, employing township and village co insurance officers, etc.

For insurance institutions operating agricultural insurance business in Beijing district level administrative regions, the Notice requires that the regions operating agricultural insurance business should have branches, and near No major administrative punishment for agricultural insurance business within three years; The branch shall have a special agricultural insurance information system, professional standard inspection equipment, and at least one agricultural insurance special vehicle to meet the actual needs of agricultural insurance business management and services.

In terms of the establishment of commissioners, the Notice requires that branches should be staffed with at least two full-time agricultural insurance personnel. If the agricultural insurance premium is less than 40 million yuan (including the number), at least one full-time personnel should be staffed for every 10 million yuan increase. If the agricultural insurance premium is more than 40 million yuan, at least six full-time personnel should be staffed.

For insurance institutions newly opening agricultural insurance business, in the first year of operation, they can select 1-2 district level branches with strong service ability from Beijing to pilot, and gradually increase their business scope.

However, the Notice also points out that if the head office of an insurance company is registered within the jurisdiction of Beijing and meets the provisions of Article 6 of the Notice, its provincial branches may apply to the Beijing Banking and Insurance Regulatory Bureau for exemption, which will consider the relevant circumstances as a whole to grant the exemption. The number of exempted provincial branches shall not exceed 1. At the same time, insurance institutions that do not have the conditions for agricultural insurance business in Beijing may not participate in agricultural insurance business in Beijing in the form of co insurance.

"The agricultural insurance co insurance body should strengthen its own management, clarify the rights and obligations of all parties, strengthen risk management and control, encourage appropriate competition and innovation, and improve service capacity and water supply flat 。” The Notice said so.

What is the significance of this document and its impact on agricultural insurance business? Li Wenzhong, deputy director of the Department of Insurance of Capital University of Economics and Trade, believes that this document issued by Beijing Banking and Insurance Regulatory Bureau further clarifies the specific conditions for operating agricultural insurance business in the Beijing market on the basis of the Agricultural Insurance Regulations and the Notice of the Banking and Insurance Regulatory Commission, and encourages insurance institutions to operate agricultural insurance business in poor, low-income areas and areas with fewer agricultural insurance institutions, It is to maintain moderate competition in the agricultural insurance market, avoid disturbing the market order due to excessive competition, reduce the quality of business, damage the interests of farmers, and ensure the high-quality development of agricultural insurance business.

"Although China has surpassed the United States to become the world's largest agricultural insurance market in 2020, at present, China's agricultural insurance is mainly low guarantee (materialized) cost insurance. In the future, with the continuous emergence of new agricultural insurance products and higher water security flat With the promotion of full cost insurance and income insurance, China's agricultural insurance market will continue to develop rapidly for a long time. " Li Wenzhong predicted the future development trend of the agricultural insurance industry.

At the same time, Li Wenzhong said that in order to ensure the high-quality development of agricultural insurance business and achieve relevant policy goals, the agricultural insurance supervision should check and supervise agricultural insurance institutions in strict accordance with the specified qualification conditions in the future, standardize market behavior, shield unqualified institutions from the market, create a moderately competitive market environment, and give play to the decision of market mechanism in resource allocation nature To promote the high-quality development of agricultural insurance business.

key word: Beijing Agricultural insurance business Operating conditions Threshold refinement