CHINA SEES FOURTH RURAL INSURER OPEN IN ANHUI

The Chinese province of Anhui has received the regulatory approval needed to set up a local agricultural insurance group. The province, which is one of China’s largest agricultural areas, has been able to establish the company, to be named Anhui Guoyuan Agricultural Insurance Company, due to the introduction of China’s rural financial reforms. With natural disasters and catastrophes causing widespread damage to rural farmers and communities, the Chinese authorities are keen to encourage wider adoption of insurance policies in rural communities. A total of 12 insurers, including Guoyuan Holding and Anhui province Energy Group, will contribute the 305m yuan to be held as registered capital in the new company and is expected to be open for business by the beginning of 2008. Zhou Weiguo, vice general manager of Shanghai Anxin Agricultural Insurance, one of the 12 insurers involved in registering capital in the new company, says that it will initially look to provide climate index insurance, risk insurance for vegetable insurance and liability insurance for all agricultural products. Anhui now joins the Shanxi, Sichuan and Hainan provinces which have established similar agricultural insurance groups.