TGIC & TME launching Prickly Pepper with Price Insurance + OTC Options
Updated:2016-06-29 From:TME Views: 2490
A photo of Yu Shuiping, director of Financial Affairs Office of Yaan govrnment
A photo of Feng Guiqiang, executive deputy magistrate of Hanyuan county
A photo of Liu Angsheng,chairman of TME
A photo of TGIC and TME representatives answering questions from reporters
A photo of a female reporter interviewing Chairman Liu Angsheng
A scene of the launching ceremony
A product launching ceremony of Price Insurance + OTC Options in favor of Hanyuan origin prickly pepper was successfully held in Chengdu on June 29, 2016, with cosponsors as Taiping General Insurance Co Ltd (TGIC) and Tianfu Mercantile Exchange (TME).
The model of Price Insurance + OTC Options targeting Hanyuan origin prickly pepper product, the first case in the country, is co-designed and brought up by TGIC and TME to address the issues of agricultural planning in the course of relevant agricultural development, to strengthen capacities of the farmers in evading possible price fluctuation risks, and to deal with fair pricing as well. Locally and nationally, it will boost up prickly pepper industry via TME’s trading platform.
By performing forward contract transactions on the trading platform of TME’s Hanyuan Prickly Pepper Trading Center, not only will advance sale of prickly pepper be achieved, but also support TGIC to provide price guideline data for its designing and launching follow-up insurance covered products.
According to characteristics of prickly pepper production in Hanyuan area, TGIC has successfully brought up its first insurance price covered product prickly pepper, thus providing manufacturers, traders of prickly pepper industry chain with substantial efficient financial support.
Following a predetermined insurance price and compensatory derived from that of advance sale contracts, Price Insurance + OTC Options will reassure local prickly pepper enterprises and farmers. In the meantime, the insurance company may complete a price risk transfer by purchasing a certain set of OTC options. And In this way, a virtuous and inherent cycle of combination of agricultural insurance and related OTC options could be formed.
TME will play a role of furnishing the insurance company and OTC options issuer with vital sales channel and settlement services.
A product launching ceremony of Price Insurance + OTC Options in favor of Hanyuan origin prickly pepper was successfully held in Chengdu on June 29, 2016, with cosponsors as Taiping General Insurance Co Ltd (TGIC) and Tianfu Mercantile Exchange (TME).
The model of Price Insurance + OTC Options targeting Hanyuan origin prickly pepper product, the first case in the country, is co-designed and brought up by TGIC and TME to address the issues of agricultural planning in the course of relevant agricultural development, to strengthen capacities of the farmers in evading possible price fluctuation risks, and to deal with fair pricing as well. Locally and nationally, it will boost up prickly pepper industry via TME’s trading platform.
By performing forward contract transactions on the trading platform of TME’s Hanyuan Prickly Pepper Trading Center, not only will advance sale of prickly pepper be achieved, but also support TGIC to provide price guideline data for its designing and launching follow-up insurance covered products.
According to characteristics of prickly pepper production in Hanyuan area, TGIC has successfully brought up its first insurance price covered product prickly pepper, thus providing manufacturers, traders of prickly pepper industry chain with substantial efficient financial support.
Following a predetermined insurance price and compensatory derived from that of advance sale contracts, Price Insurance + OTC Options will reassure local prickly pepper enterprises and farmers. In the meantime, the insurance company may complete a price risk transfer by purchasing a certain set of OTC options. And In this way, a virtuous and inherent cycle of combination of agricultural insurance and related OTC options could be formed.
TME will play a role of furnishing the insurance company and OTC options issuer with vital sales channel and settlement services.