by Pramod Aggarwal, CGIAR Program on Climate Change, Agriculture, and Food Security. Presented at seminar on Insuring the future of farmers under climate change. London, UK. 28 January 2015. Learn more: http://ccafs.cgiar.org/weather-index-based-insurance

1. Crop insurance in India:
Reaching the Unreached
Pramod Aggarwal
CGIAR Program on Climate Change, Agriculture, and Food Security

2. Progress of Crop Insurance In India
0
5
10
15
20
25
30
35
40
45
50
1980 1985 1990 1995 2000 2005 2010 2015
Year
No of farmers, million
Area covered, million ha
Insured
farmers,
19%
Uninsured
farmers,
81%

3. Top 10 reasons for dissatisfaction
in unsatisfied index-insured
farmers*
26.8
29.8
33.8
37.3
44.3
45.3
53.3
56.5
56.5
80.8
0
20
40
60
80
100
Types of Risks Covered
Period of Risk Coverage
Time Delay in Claim
Settlement
Explanation on WBCIS
Policy
Quantum of Sum Assured
Responsiveness of
Intermediary
Resolution of Queries
Mechanisms for Grievance
Redress
Convenience in Enrollment
Location of Weather Station
*Source: AFC, GOI, 2011

4. Farmer’s main suggestions for
improving crop insurance
• Insurance literacy: Greater understanding
of crop insurance programs
• Product design: easy to understand and
site specific
• Site-specific data: weather, crop-cutting
samples for yield loss assessment
*Source: AFC, GOI, 2011

5. • Further
standardization of
products based on
agronomic and
statistical principles
to support robust
actuarial design and
pricing: AEZ specific
Atlas
Scaling out crop insurance in India
Improved product design

6. • Bundling with other risk
management initiatives such
as drought/flood tolerant
varieties, water management
practices- climate smart
villages
• Double trigger products
• Bundling with disaster relief/
management
Scaling out crop insurance in India
Products for comprehensive risk management

7. Scaling out crop insurance in India
Engaging farmers in product design and MRV

8. • Huge penetration of
smartphones/tablets
• Rural service centres
• Online policies and
enrollment
• Crowd sourcing of farmers
practices and digital images
of crops
• Cloud computing of losses
• Continuous feedback to all
stakeholders
• Direct benefits transfer- 115
million bank accounts for
poor in 6 months
• Linkages with other schemes
such as agro-advisories
Scaling out crop insurance in India
ICT solutions

9. Scaling out index insurance in India
Improved targeting
1 dot = 25000 ha Source: IMD gridded data 1981 to 2011

10. Summary
Scaling-out crop insurance: Key actions
1. Improved insurance literacy
2. Comprehensive risk
management solutions:
integrating insurance with
other approaches
3. Engaging farming
communities in product
designing and MRV
4. ICT for scaling out, farmers
participation, and for quick
settlement of claims.