Lawmakers Question COA About Low Crop Insurance Rates|農業保險投保率低 農委會:加強宣導

The Council of Agriculture launched a farm produce insurance program in 2015. At the very start, only 89 farmers took out insurance. This number rose to over 11,000 by September this year. During an interpellation with the legislature's Economics Committee on Oct. 18, the COA was asked about why the insurance rate for some crops is under 1 percent. It said it needs to step up its promotion of the program, and it is currently working on institutionalizing agriculture insurance.


Natural disasters frequently strike Taiwan. For the past 15 years, the average annual value of agricultural losses has totaled NT$ 12.3 billion. However, the government has only distributed NT$ 3.1 billion in cash to help farmers, meaning farmers have to absorb 75 percent of losses. In 2015, the Council of Agriculture launched an insurance pilot program for farm produce. The first crop to be insured was top grafted pears. The program was subsequently expanded to nine other crops, including mangos, rice and sugar apples. During an interpellation on Oct. 18, legislators asked why the insurance rate is so low.

For some items, the coverage is under 1 percent. I wonder if it is because farmers are not in the habit of paying insurance premiums, or is it because they are too high. Seventy percent are part-time farmers and 30 percent are full-time farmers. Full-time farmers make a living from agriculture, so they are more likely to take out insurance. Part-time farmers don't take out insurance. This is one factor.

The COA delivered a report on agriculture insurance to the legislature's Economics Committee on Oct. 18. Legislators asked about the low insurance rate and questioned why there are different subsidy standards for cities and counties to promote this insurance program. The risk sharing standards are also different. For example, Taitung's sugar apples are insured by townships. Sometimes foehn winds cause agricultural losses in only some areas, meaning not all farmers can make claims.

This is a blind spot in the game you all have designed. Does it conform to the risk sharing standards of insurance? Does it conform to the principle of compensation for damages? Do you really think farmers will purchase this type of insurance?

Only 89 farmers took out insurance at the start of the program. The insured area covered 51 hectares. By September this year, the number of insured exceeded 11,000 and the insured area was at nearly 20,000 hectares. However, the COA admits parts of the program need to be amended and there is still room for improvement in the number of insured farmers.