Page 23 - Insurance Times April 2023

Scaling Cattle

Insurance

through Digital

Dr Ajay Verma
Solutions General Insurance Consultant
Chief Transformation Officer-Insurance and
Advisor to the board of
Dvara E-Dairy Solutions Pvt Ltd, Chennai, India

The tattooing, hot/cold branding and brass ear tagging methods are obsolete. Affixing Polyurethane
ear tag and injectable RFID requires skilled professionals and don't complement scale in a fool-
proof manner. Moreover, lack of tamper-proof, scalable, unique digital identity for bovines is one
of the significant reasons for moral hazard, resulting in a higher loss ratio for livestock insurers.

he cattle population in India, as per the latest in their product portfolio. Moreover, in general, 4-5%
T census, is 303.7 million, which includes cows and premium rates per annum are charged for cattle insurance
buffaloes. India #1 in cattle population and also
by most insurers which are relatively very high compared to
the largest milk producer in the world. Indian
Government unveiled National Digital Livestock Mission at various other insurance products.
The major challenge that emerged from talking to insurers is
National Dairy Development Board, Anand, in 2021. A digital
moral hazard, lack of tools to address adverse selection and
platform is prepared jointly by the Department of Animal
high loss ratio. Although insurers attempted all possible
Husbandry and Dairying and NDDB.
measures , nothing has worked well and up to the satisfaction
to build confidence in insurers having a fool proof solution.
The aim is to create a farmer-centric, technology-enabled
Many instances of misuse, manipulation of identification
ecosystem where the farmers can realize better income
system are observed in the field.
through livestock activities with the correct information. The
farmers will have a unique cattle identity through permanent
Insurers have used various cattle identification methods such
identification to keep track of health, breeding, traceability,
as tattooing, hot/cold branding, brass/polyurethane ear
insurance, and disease control.
tagging or radio frequency identification devices (RFID).
However, a more reliable solution is needed for bovine
Trigger for Innovation:
identification from theft, false claims, and duplication. The
Insurance Industry has been in the cattle insurance business
tattooing, hot/cold branding and brass ear tagging methods
for nearly five decades in India. But today, the penetration of
are obsolete. Affixing Polyurethane ear tag and injectable
cattle insurance has been less than 5% of the cattle population
RFID requires skilled professionals and don't complement
in India, despite the support and push from the state/central
scale in a fool-proof manner.
Governments, and almost all private and public sector
insurance companies of India have cattle insurance products Moreover, lack of tamper-proof, scalable, unique digital
20 April 2023 The Insurance Times