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The No. 1 Document released by China’s central government in 2017 is named “Some Opinions of the CPC Central Committee and the State Council on Deepening the Advancement of the Supply-side Structural Reform in Agriculture and Accelerating the Cultivation of New Driving Forces for Agricultural and Rural Development”, which clearly requires to “deepen advancement of developing the futures and options market for agricultural products, vigorously direct the agriculture-related enterprises to use futures and options to manage price risks, and steadily expand the pilot program of ‘Insurance + Futures’”.
In terms of the pilot program of “Insurance + Futures”, according to an official of Dalian Commodity Exchange (DCE), in 2016, DCE joined hands with 12 futures companies and 7 insurance companies to carry out 12 pilot programs of “Insurance + Futures” in Heilongjiang, Liaoning, Inner Mongolia and Anhui, including 9 for corn and 3 for soybean, with 163,200 tonnes of corn and 35,000 tonnes of soybean involved. Specifically, 8 of the pilot programs recorded settlement of insurance claims, with a total of RMB 4.8179 million claimed.
Next, DCE will energetically implement the requirements of the No. 1 Document, further expand the size and scope of the pilot programs of “Insurance + Futures”, and pilot the revenue insurance.
