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Heilongjiang "Zhaoguang Farm Soybean Income Insurance Pilot Project” recently completed the claim settlement totaling RMB 2.47 million. The pilot project covered an area of about 37,500 mu, providing protection for the earnings from the planting of 6,000 tonnes of soybean at Zhaoguang Farm and Xianghe Farm in Heilongjiang Province, with 201 farming households and a yield of RMB 544 per mu insured. According to the yield measurement and calculation after the expiration of the insurance, except the fourth administration area of Zhaoguang Farm where the stable output without the impact of disasters did not trigger the claim conditions, all other insured areas touched off the claims because of disasters or varying degrees of price drops, with the total claim at RMB 2.47 million.
Zhu Lihong, vice president of Dalian Commodity Exchange (DCE), said that since the first price insurance based on the DCE futures prices was launched with the support of DCE in 2015, DCE has steadily expanded the “insurance + futures” pilot program and continued to step up the support in funds. In 2017, DCE supported the implementation of 32 pilot projects of "insurance + futures" and invested more than RMB 60 million. As of now, 28 projects have realized the claim settlement, with the claim amount exceeding RMB 40 million.
In 2017, there were a number of highlights in DCE’s "insurance + futures" model. First of all, the pilot program of income insurance was implemented to protect the farmers in a more comprehensive way; secondly, the large-sized enterprise groups were introduced to link up the distribution channels by taking advantage of the Basis trade; thirdly, the commercial banks were brought in to issue loans to the farmers in need of financing; and fourthly, having fully recognized the value and significance of the pilot programs, the local governments stepped up their support.
