This started to change after 2005, when India and China began expanding their own agriculture insurance plans. Still, there has been low penetration of agriculture insurance in India, with challenges like insufficient risk coverage, delayed and inaccurate claim assessment, and leakage. The banking channel continues to drive distribution of agriculture insurance, but there is a need for insurance companies to reach rural markets through new marketing mechanisms apart from the traditional bancassurance model. In addition to technological intervention, it is necessary to keep time lags in publishing crop yield statistics for the cropping period to a minimal. For insurers too, the potential clearly exists for using technology to ensure implementation of agriculture insurance schemes in a sustainable manner.

Source: Mint February 21, 2017 18:37 UTC