Making Insurance Markets Work for Farmers in India
India's crop insurance program is the world's largest with 25 million farmers insured. Yet 85 million farmer households are not covered. Issues in design, particularly related to delays in claims settlements, explain the low coverage. To...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2010/11/13914562/making-insurance-markets-work-farmers-india http://hdl.handle.net/10986/10469 |
| Summary: | India's crop insurance program is
the world's largest with 25 million farmers insured.
Yet 85 million farmer households are not covered. Issues in
design, particularly related to delays in claims
settlements, explain the low coverage. To address these
problems, the World Bank provided actuarial inputs, engaged
in policy dialogue, and facilitated the launch of an
innovative crop insurance program that will improve equity,
risk mitigation, and claims settlement for farmers; provide
tools for budget management and agricultural policy for
government; and open up the market for public- and
private-sector insurers and reinsurers. Initially, the
program will be available to an estimated 8 to 10 million
farmers, of whom 3 million are expected to participate in
the first year with a total sum insured in excess of $1
billion. Over time, this project could be scaled up to be
available to India's 110 million farmers. This smart
lesson describes lessons learned in developing and
implementing the crop insurance program. |
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