Milliman worked in Shaanxi province in China to develop microinsurance and broader risk management solutions for rural, low-income populations as part of an International Fund for Agricultural Development-funded project.
As the team worked there, they had a number of questions about microinsurance in China, realizing that there is little known about it in the English-speaking world. How is microinsurance defined in China? What is the market like? Poverty in China is mainly concentrated in rural areas, where over 500 million people live. What role is microinsurance playing in achieving China’s target to eliminate rural poverty by 2020?
Milliman’s Mariah Mateo Sarpong and Queenie Chow recently sat down with associate professor Yi Yao, of the Department of Risk Management and Insurance at Peking University, to answer some of these questions. Professor Yao shared her thoughts on microinsurance in China, its link to rural development and poverty alleviation, and what the next 10 years might look like for the market.