China Insurance Regulatory Commission has given approval to launch a mutual insurance company, the first of its kind in the country.

The mutual insurance company will manage the insurance needs of agricultural businesses in the northeast Heilongjiang's grain growing area.

Mutual insurance is popular and widely used in foreign countries. Most agricultural insurance in developed countries is mutual insurance.

The difference between a mutual insurer and a joint-stock insurer is that mutual insurer owners are also insurance buyers.

Source: CRI news