P646 | Programme on Agriculture Insurance (Non-Life)

Agricultural risks have become increasingly dynamic and volatile due to changes in climate, crop phenology, and evolving agricultural practices. With rising weather aberrations and shifts in risk patterns, farmers are frequently experiencing droughts and floods, leading to significant crop losses. Traditional risk management methods adopted by farmers are no longer adequate to cope with this changing scenario. At times, even governments find it difficult to provide sufficient financial support to compensate for these losses.

In this context, the role of insurers in providing agricultural insurance - particularly crop, livestock, aquaculture, forestry, and floriculture insurance - has gained considerable importance in offering financial protection to farmers. Recent years have witnessed the development of innovative approaches such as index-based parametric insurance, the use of satellite imagery, digitalisation of land records, and mobile applications to improve risk assessment and claims management. With the support of governments and other stakeholders, agricultural insurance has emerged as a significant and high-potential line of business.

Although the premium potential is substantial, high claim incidence, adverse selection, and moral hazard present major challenges for insurers in making this portfolio sustainable.

This training programme is designed to provide essential technical insights to key stakeholders, including insurance professionals, enabling them to effectively manage agricultural insurance schemes and address implementation challenges successfully.