False Increase of Rice Insurance Coverage Area, Duplicate Coverage! Yangguang Agricultural Insurance Zhanjiang Branch Fined 720,000 Yuan

On March 20, the Zhanjiang Regulatory Branch of the National Financial Supervision and Administration issued an administrative penalty decision showing that Sunshine Agriculture Mutual Insurance Company (hereinafter referred to as “Sunshine Agriculture Insurance”) Zhanjiang Central Branch was fined a total of 720,000 yuan for multiple violations. At this critical juncture when agricultural insurance shifts from “expanding coverage” to “improving quality,” this penalty again sounds the alarm for compliance.

The penalty notice indicates that the main violations by Sunshine Agriculture Insurance Zhanjiang Central Branch include: inflating rice insurance coverage area and premiums; double underwriting of the same land plots; using business convenience to seek improper benefits for other organizations; and paying auxiliary fees to personnel who did not provide agricultural insurance services.

In response to these behaviors, the Zhanjiang Regulatory Branch fined the institution a total of 720,000 yuan, and also issued warnings and fines to responsible individuals: Li Shuhai was warned and fined a total of 100,000 yuan; Xie Zhongming was warned and fined 10,000 yuan.

Notably, this is the second regulatory penalty in Guangdong for Sunshine Agriculture Insurance’s violations in agricultural insurance business, following the fine in March 2025 when its Jiangmen Central Branch was penalized for “untruthful financial and business data.”

According to the official website, Sunshine Agriculture Insurance was established in January 2005, approved by the State Council and the former China Insurance Regulatory Commission, initiated by Beidahuang Group as a specialized agricultural insurance company. Currently, the company has operating funds of 2 billion yuan, with over 280 branches in Heilongjiang, Guangdong, and Tianjin, employing more than 2,000 staff. Its annual premium income is nearly 5 billion yuan.

As a professional organization deeply involved in agricultural insurance, it should strictly adhere to compliance and support policies benefiting farmers. However, recent reviews show that its branches have frequently crossed regulatory red lines.

The solvency report shows that in 2025, multiple branches of Sunshine Agriculture Insurance were penalized: on November 27, the Shuangyashan Central Branch and Raohe Insurance Cooperative were fined for violations including “untruthful agricultural insurance data”; in June, the Nenjiang Branch was warned and fined 10,000 yuan for inadequate internal controls; in May, the Duerbote Branch was fined 50,000 yuan for seeking improper benefits for others, and the Anda Branch was fined 120,000 yuan for fictitious advertising expenses; the Qitaihe Branch was fined 80,000 yuan for misappropriation of funds; in March, the Keshan Branch was penalized for inadequate internal control implementation; and additional benefits given to policyholders, insured persons, and beneficiaries resulted in a fine of 76,000 yuan.

The repeated violations by Sunshine Agriculture Insurance reflect the increasingly strict regulatory environment for agricultural insurance.

Southern Metropolis Daily previously reported that as the “ballast stone” of food security, agricultural insurance is an effective mechanism for modern agricultural risk management, playing an important role in stabilizing agricultural production and protecting farmers’ income. Data from the National Financial Supervision and Administration show that in 2025, China’s agricultural insurance premium income reached 155.55 billion yuan, providing risk protection for 139 million households with a coverage of 5.32 trillion yuan. The coverage and protection levels continue to improve, and high-quality development is being consolidated.

This year, the government work report explicitly proposed “formulating measures to promote the development of agricultural insurance.” A relevant official from the National Financial Supervision and Administration revealed that the next steps will include “expanding the coverage of full-cost and income insurance, accelerating the improvement of a multi-layered agricultural insurance system,” and “continuously improving the accuracy of underwriting and claims, and enhancing claims service efficiency and satisfaction.”

Industry insiders point out that precise underwriting and claims are core to high-quality agricultural insurance development, directly affecting farmers’ interests, the efficiency of fiscal funds, and the credibility of the insurance industry. The penalty to Sunshine Agriculture Insurance Zhanjiang Central Branch is not only a warning to a single institution but also sends a clear signal to the entire industry: maintaining compliance is fundamental to steady and sustainable growth.

Reporting by: Nan Du · Wan Cai She Reporter Guan Yuhui