In the face of natural disasters, how to protect property safety through insurance?

Editor's note

In the face of natural disasters, we need to ensure two "safeties" - life safety and property safety. How to minimize casualties and property losses has always been the focus of my country's disaster prevention, reduction and relief work.

Previously, this edition has launched a special report "It is "safe" not to take a vacation during the summer vacation - please remember these risk avoidance knowledge points! 》, to popularize the risk points of various natural disasters for readers. In this issue, we turn our attention to how to better deal with the property loss risks that natural disasters may bring. Crops were damaged, houses were destroyed, vehicles were flooded... To minimize property losses, it is necessary to strengthen insurance awareness and improve system protection while taking various precautions.

Crops are affected, risks can be avoided

The frequent occurrence of extreme weather has a direct impact on crop production and sales. Farmers may also have difficulty in cash flow due to reduced income, which will in turn affect the production of the next season, forming a vicious cycle. In this context, agricultural insurance is a “safety net” that reduces risk. It is not only a post-disaster compensation, but also a "tourniquet" and "restart button" for the continuation of production.

Recently, the Ministry of Finance and other four departments issued the "Implementation Plan on Accelerating the High-Quality Development of Agricultural Insurance," which requires that by 2030, a multi-level agricultural insurance system that is consistent with the risk protection needs of farmers, adapted to the development of modern agriculture, and with division of labor between the central and local governments will be basically established to achieve a win-win situation in which subsidies are efficient, industries are guaranteed, farmers benefit, and institutions are sustainable.

So, what does agricultural insurance cover, how to buy it, and how to pay for it? How can farmers get more protection? The reporter interviewed the business leaders of relevant insurance institutions.

Question: Heavy rains, typhoons and other extreme weather events have occurred frequently this year. How can agricultural insurance help farmers? What disasters can be compensated?

Answer: As a policy tool for the country to support agriculture and benefit farmers, agricultural insurance is generally a comprehensive liability insurance type, and its coverage is broader than ordinary insurance clauses. Especially for policy-based agricultural insurance supported by financial subsidies, in accordance with relevant national regulations, it will cover major local natural disasters, major pests, diseases, animal diseases, accidents, wild animal damage and other risks. It can be said that agricultural insurance has created a "safety net" for farmers to resist disaster losses and ensure production income. Agricultural insurance can provide compensation according to the terms of heavy rains, floods, waterlogging, wind disasters, and hail caused by frequent extreme weather in various places this year, eliminating the worries of farmers engaged in planting and breeding under extreme weather, so that farmers can devote themselves to agricultural production.

Q: How to apply for agricultural insurance? How much does it cost?

Answer: At present, it is very cost-effective for farmers to buy policy-based agricultural insurance, because most of the premiums paid by farmers are subsidies from the national and local governments. In some cases, the subsidy can reach 80% or even more than 90%, while in some cases, the subsidy can reach 30% to 50%. For example, if you grow wheat, the insured amount per acre is 1,000 yuan, and the premium rate is 5%. The premium originally requires 50 yuan. Since the government subsidizes 40 yuan, you may actually only need to pay 10 yuan.

There are three main channels for insurance: the first is unified organization in the village, suitable for small farmers with small planting and breeding scale; the second is to find insurance companies by yourself, and farmers operating on a moderate scale can find the nearest insurance company branch; the third is online. Some insurance companies have opened WeChat official accounts, mobile apps, etc., and some local government service platforms have agricultural insurance entrances.

Q: How to make compensation after a disaster? What are the standards for claims settlement?

Answer: Agricultural insurance claims are calculated based on actual losses. Simply put, it means "compensate for the amount of loss." For example, the insured amount of wheat is 1,000 yuan per mu. A farmer planted 100 acres of wheat, and 8 acres were affected during the harvest period. After damage inspection, it was confirmed that the loss rate per mu was 30%, which reached the compensation threshold (generally the loss rate is 10% to 20%, which may vary in different regions, depending on the contract). Then the compensation amount is 8 × 30% × 1,000 = 2,400 yuan, and the average compensation per mu is 300 yuan. We cannot simply divide 2,400 yuan by 100 acres and come to the wrong conclusion that the average compensation per mu is only 24 yuan. After all, not all 100 acres were affected by the disaster. If the loss rate reaches 80%, it is usually considered a total loss and the farmer will be given the maximum compensation.

In addition, the proportion of compensation for agricultural products is different in different growth stages. For example, when corn has just emerged, because farmers only put in seeds and a small amount of chemical fertilizers, they spend very little money. Even if there is a disaster, the loss will not exceed these costs. If the disaster occurs when the seedlings are just emerging, then according to the agreed investment ratio, such as 40%, multiply 1,000 yuan by 40%, and then multiply by the loss rate, such as 30%, the average compensation per mu will be 120 yuan. When the harvest is about to begin, the costs of seeds, fertilizers, pesticides, labor, etc. have all been invested, and the proportion of disaster compensation will increase. For example, if a disaster occurs during the mature stage, the loss rate is also 30%, and the average compensation per mu is 300 yuan.

Q: What are the differences in subsidy ratios in different regions and different types of insurance?

Answer: The agricultural insurance subsidy ratio is not “one size fits all” across the country, but is differentiated based on regional differences, crop/breeding varieties, and insurance types. The core principle is "shared by central finance + local finance", and farmers only need to bear the self-payment part. Since the insurance coverage, premium rates and subsidy ratios of agricultural insurance vary in different regions and varieties, the specific amount of money you need to pay will also vary.

Specifically, look at the central financial subsidies: In 2026, the state will provide agricultural insurance premium subsidies for 16 bulk agricultural products in the three categories of planting, breeding, and forestry, including rice, wheat, corn, cotton, potatoes, oil crops, sugar crops, natural rubber, three major grain crop seed production, reproductive sows, fattening pigs, dairy cows, public welfare forests and commercial forests, highland barley, yaks, and Tibetan sheep. The subsidy ratio is based on the central government's provincial financial subsidy of not less than 25%, distinguishing the eastern region, the central and western regions, and the northeastern region, providing subsidies of 35% and 45% respectively for planting insurance and 40% and 50% respectively for breeding insurance.

Question: After a disaster occurs, financial regulatory authorities often issue notices requiring "compensation should be made quickly, all compensation should be paid, and reasonable advance compensation". What does "quick compensation" and "prepayment" mean?

Answer: After a disaster occurs, farmers are generally required to report the incident as soon as possible within 24 to 48 hours. Quick compensation and prepayment are innovative claims measures adopted by insurance companies in recent years in response to the call of the party and the country to improve the service experience of agricultural insurance in times of major disasters, allowing farmers to quickly obtain insurance compensation after encountering a disaster. Specifically, quick compensation means that after a disaster occurs, insurance companies use a series of methods to speed up the claims process, including opening green channels during major disasters so that farmers can report cases and settle claims in a timely manner; implementing document reduction and exemption measures so that farmers can complete the claim process more conveniently; and using technological means such as satellite remote sensing and drones to allow insurance institutions to quickly complete the assessment of losses. In short, various means should be used to enable farmers to quickly receive compensation and resume production and life in a timely manner. Pre-compensation means that after a disaster occurs, when it is difficult to accurately assess crop losses for a while (for example, the disaster site cannot be reached, the crops still need a growth and recovery period, etc.), the insurance company will pay a part of the compensation to the farmers in advance, so that the farmers can use the money to carry out disaster relief and disaster relief, organize post-disaster reconstruction, etc., and then formally settle the claims after the subsequent losses are determined.

"Double guarantee" to maintain the bottom line of "comfortable living"

Fujian is surrounded by mountains and faces the sea. Natural disasters such as typhoons, heavy rains, and floods occur frequently. More than 70% of the province's population is located in areas with severe earthquake, geological, and oceanic disasters. Rural housing is the most important family property for farmers. Once it is damaged by a disaster, it often means that many years of hard work have been wasted. How to maintain the bottom line of "stable housing" for millions of farmers? Fujian gave the answer with a system that has been in operation for nearly 20 years—policy-based rural housing insurance.

What is rural housing insurance? In layman's terms, it is a government-led, fiscally subsidized policy that provides economic compensation for rural housing losses caused by natural disasters and accidents. Since Fujian launched rural housing insurance in 2006, the level of protection has continued to improve and the coverage has continued to expand.

Currently, Fujian adopts a dual protection model of “basic insurance + superimposed insurance”. The basic insurance is guaranteed by the whole province, and the premiums are fully borne by the provincial finance. Farmers do not need to pay a penny, and the maximum claim for each household is 16,000 yuan. In addition, there is overlay insurance, with a premium of 12 yuan per household - a provincial financial subsidy of 7 yuan, a county financial subsidy of 2 yuan, and farmers only need to pay 3 yuan themselves. The personal self-payments of subsistence allowance households, extremely poor people and originally registered poor households will also be fully borne by the provincial finance. In other words, people in need can enjoy double protection without spending a penny. After superposition, each household can receive up to 40,000 yuan in compensation.

In what situations can I be compensated? The reporter learned that natural disasters such as typhoons, floods, mudslides, fires, lightning strikes, heavy rains, storms, hail, snowstorms, cliff collapses, landslides, and accidents such as explosions and falling flying objects are all covered by the insurance.

In July last year, Typhoon Danas struck and a farmhouse in Meiyu Village, Yangzhong Town, Jiaocheng District, Ningde was severely damaged. The insurance company quickly launched an emergency response after receiving the report, and it only took 2 days from investigation to compensation.

"Not only did it relieve the urgent needs of the disaster-stricken farmers, but it also became a 'timely rain' to help the people rebuild their homes," said a local village cadre.

Innovation is not only about "compensation", but also about "prevention". In December last year, the Fujian Provincial Department of Emergency Management teamed up with relevant insurance companies to innovatively implement the "rural housing insurance + risk reduction" service model relying on policy-based rural housing insurance. Special funds for risk reduction services will be allocated from premiums for the construction, operation and maintenance of flood control video monitoring points.

Before the flood season this year, all 1,320 flood control video monitoring points in 696 key towns and villages in the province had been completed and put into use, 7 months ahead of schedule. These monitoring points are mainly deployed in areas such as mountain torrent mouths, geological disaster hazard points, small and medium-sized rivers, and downstream of reservoirs. They rely on communication towers to achieve 360-degree all-round monitoring. Chunmei Township, Dehua County, discovered through monitoring footage that cracks appeared on the back slopes of some villagers' houses, and immediately organized relocation to avoid casualties.

“We cannot wait for a disaster to occur before we lose money, but we should proactively help customers identify risks and prevent accidents in advance,” said a relevant person in charge of an insurance company. From "post-disaster compensation" to "pre-disaster prevention", Fujian has greatly extended the protection chain of rural housing insurance.

A set of data is enough to illustrate the effectiveness of this system: In 2025, rural housing insurance in Fujian will underwrite 13.91 million households, provide a cumulative risk protection of 275.4 billion yuan, and pay compensation of 70.09 million yuan throughout the year.

Recently, the Fujian Provincial Finance Department issued another 93.54 million yuan in rural housing insurance premium subsidies for 2026. Rural housing insurance allows residents to spend a small amount of money in daily life, have protection in case of disasters, and have the confidence to rebuild. It is not just a piece of insurance policy, but also a leap in governance concepts: from passive response to active prevention, from single compensation to full-chain services, from government solo to multi-party chorus.