For example, premiums from agricultural producers, mainly large-scale rubber plantations and dairy operations, make up only 1% of revenue for the state-owned Bao Viet Group (Tran, 2014c). The high risk of natural disasters and epidemics mean that insurance premiums are quite high, out of reach for many farm households. At the same time insurance offers an attractive policy option for dealing with risk and thereby encouraging production. To overcome this dilemma, a three-year pilot insurance programme was introduced in 2011 and provided through two state-owned insurance companies, Bao Viet and Bao Minh.42 The established insurance premium is subsidised by the government on a progressive scale: 100% for poor farming households; 80% for farming households just above the poverty line; 60% for other farming households; and 20% for agricultural production organisations.