Introduction of Industrial Crop Insurance in DPR Korea

The scientific methods are being applied to the cultivation of industrial crops and campaigns for higher quality and yields are being conducted in DPRK.

Industrial crops are widely cultivated in inland regions of our country, which are appropriate for their cultivation in terms of agricultural meteorology, and are grown by means of scientific and modern methods throughout the life cycle in order to secure high yields.

Primary concern of cultivators is quality control, since industrial crops are generally priced much higher than cereal crops and such price greatly varies according to their qualities.

Accordingly, the demand of the industrial crop farms for insurance cover has also been greatly increased. Given this increase, Korea National Insurance Corporation (KNIC) began underwriting industrial crops of those farms in 2018, based on some prior analysis of elements like performance of the farms and influence of recent weather conditions over cultivation.

While further increasing the number of its clients, KNIC will see to it that the risk management as to the existing covers is further enhanced to scientific and modern standards thus securing good harvests of the insureds in spite of the adverse weather conditions.

At present, the industrial crops covered by KNIC are cotton and hop, and the risks covered are natural perils, namely flood, windstorm, hail and sharp fall in temperature.

   

Cotton is widely cultivated in our country, and hop is the main ingredients used in Taedonggang Brewery, one of the largest beer producers in DPRK.

For the sake of maintaining steady cultivation of industrial crops in 2019 as well, KNIC will be carrying on risk and loss surveys on the insured farms on a regular basis in cooperation with Central Agricultural Risks Association (CARA) and the insureds.