MUMBAI: The government is exploring a new insurance scheme for farmers that could cover their income, livestock and other assets, in addition to crop insurance, according to international reinsurance major Swiss Re.
"The government is considering an overarching, holistic insurance package for farmers," said Harini Kannan, head, agriculture, South-West Asia, Swiss Re.
The Zurich-based reinsurer has participated in discussions held by the government with various stakeholders in the agriculture sector, including other insurance companies. "The Prime Minister's Office (PMO) as well as the agriculture ministry are involved in the process. We have given our feedback during the discussions. We hope the government makes an announcement on the scheme soon," Kannan said, speaking on the sidelines of an event organised by the reinsurer.
Suggestions from the company during the consultation process included improving the infrastructure for quicker claim settlement, use of better technology for recording crop yield and weather measurements, expansion of distribution network to include farmers' organisations and Common Service Centres (CSC) in addition to banks that currently account for nearly the entire distribution pie.
The reinsurer is looking to expand its presence in the Indian agriculture insurance market, the size of which is estimated at about $800 million. "In the next three to five years, it has the potential to touch the $1-billion mark," said Kannan.
Apart from crop insurance, Swiss Re is also looking to cover risks in livestock and aquaculture segments for growth. "The potential in these sectors is untapped. We are still at a very early stage of development," she said.
While the livestock segment faces threats such as floods, epidemic and unavailability of fodder, aquaculture is at risk from diseases, natural perils, malnutrition and predator attacks, the report said.
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