The insurance program against pig death expanded in its coverage in 2007. About 5.7 million pigs from 22 counties and cities were insured. In this insurance scheme, the pig farmers and the government pay 30 percent and 70 percent of the premium, respectively, whereas the Taiwan Farmers' Association and its affiliated associations serve as underwriting and re-insurance agencies. In this program, county animal disease control centers, pig production organizations, and disposal and incineration plants are responsible for extension, inspection, and certification. Because of this program, the cases of illegal selling of pork from sick and dead pigs were significantly reduced. This program contributed to the prevention of illegal use of dead pigs as well as pork hygiene and safety. This program will extend to three offshore counties in the near future.

The insurance program for pigs, dairy cows and dairy goats was continued in 2007. The insurance covered deaths on the farm and during transportation. In the year, 14,888 head of dairy cows and 1.508 million head of pigs were insured in the two categories, respectively. Currently the COA employs the natural disaster relief measures to assist farmers in recouping losses caused by natural disasters. However, theses measures have their limitations. In order to lessen the government’s financial burden and protect the interests of the farmers based on the principle of risk sharing, the COA commissioned the National Yunlin University of Science and Technology to conduct a 3-year project on the feasibility of crop insurance in lieu of disaster relief. The preliminary results suggest that crop insurance is feasible should there be adequate actuarial data from financial assessments and portfolio risk analyses in the market. The next step of the study will be on the institutional dimension.