Shift from "Post-Event Compensation" to "Front-End Prevention"

This article is reprinted from: Shanxi Daily

Our province’s forest and grassland insurance

Moving from “after-the-fact compensation” to “front-end prevention and control”

**Report by our correspondent ** The reporter learned from the Provincial Forestry and Grassland Administration that, since 2017, the administration has continuously guided insurance institutions to deepen their forest and grassland insurance services. Working together with China Coal Property & Casualty Insurance Co., Ltd.’s Shanxi Branch (hereinafter referred to as “China Coal Insurance”), it has carried out forestry insurance. Today, underwriting and coverage services under forestry insurance have been provided to forest farms and forestry bureaus in 46 counties and districts across the province, and to more than 90 forest farms and forestry bureaus. With risk protection for more than 79.07 million mu of forest land—amounting to approximately RMB 71.435 billion—efforts are being made to fully safeguard the safety of the province’s forest resources and promote the development of its forestry and grassland sector.

In line with the realities of ecological protection for forests and grasslands, China Coal Insurance’s pioneering wild-animal damage compensation insurance has been piloted in 16 counties (cities/districts). As of the end of 2024, it has cumulatively accepted 3,777 cases, benefiting 75,700-plus farmer households. It has also developed insurance for seedlings in newly planted forests and for seedlings in forests that are yet to be established. Over two years, it has paid compensation totaling RMB 6.1259 million to 13 forest farms for newly planted forests. Meanwhile, innovative products such as forest carbon sink remote sensing index insurance have also been launched, driving the transformation of forest and grassland insurance from “single-layer protection” to “diversified services.”

Focusing on forest fire prevention, China Coal Insurance is promoting the shift of its insurance functions from “after-the-fact compensation” to “front-end prevention and control.” It has cumulatively invested about RMB 11.5 million in disaster prevention and mitigation funds, building a three-in-one disaster prevention system integrating human prevention, physical prevention, and technological prevention. Relying on the “Smart Agricultural Insurance” platform to integrate technologies such as satellite remote sensing and unmanned aerial vehicle patrols, it has established an intelligent early-warning system. It has also built the province’s first technology innovation laboratory for risk reduction in forestry insurance. It has donated large quantities of supplies—including drones and firefighting equipment—to forestry bureaus and forest farms in localities, and has carried out fire-prevention skill training and firefighting drills. It has additionally jointly held a “Most Beautiful Forest Protector” selection and commendation activity to create a citywide atmosphere of everyone participating in forest fire prevention and protection. (By our reporter)