Concept and development of weather insurance index

The concept of index-based weather insurance first appeared in the late 1990s.

Weather index insurance has developed to a certain extent in many countries. For example, ICICI, India's largest private bank, has been piloting agricultural weather index insurance for five consecutive years with the help of the World Bank and has achieved good results. It has operated independently, is responsible for its own profits and losses, and has expanded its business to all of India. Of course, the risk liability of India Agricultural Weather Index Insurance is drought only. But in our country, weather index insurance is still a new thing. On November 24, 2009, my country's first crop drought index insurance product was approved by the China Insurance Regulatory Commission and launched a pilot project in some towns and villages in Changfeng County, Anhui Province. The pilot project was sponsored by the Ministry of Agriculture, the International Fund for Agricultural Development, and the United Nations World Food Program* **Developed simultaneously. This marks the official launch of my country’s practical exploration of weather index insurance.