Page 28 - Insurance Times July 2022

INDIAN NON-LIFE INSURANCE MARKET- BY PRODUCT 2020-2027

Several legislations and technologies that have the potential automobile industry, and the healthcare industry. Crop
to take India's agricultural productivity to a higher orbit will insurance is a heavily reinsured portfolio, with the
become a part of the mix as we move towards the budget for empanelled insurance companies relying on reinsurance
fiscal year 2022-2023. Considering the opportunity in the sector, support. With the introduction of PMFBY, almost 75%-80%
this change will be driven by a few key factors: government of risk is now ceded to reinsurers.
policies that favor farmers, easier access to new technologies
The loss ratio performance had been quite negative over
among farmers and surging innovation in the agri-services
the years, with 2015-16 especially bad due to severe
sector, and enhanced sustainability focus in the field of
drought. As the entire claim liability under all crop insurance
agriculture. Together these drivers could help the country's
schemes is borne by implementing agencies, it is much easier
agricultural sector grow beyond the critical 4% mark in 2022.
for the government to ascertain budgetary requirements for
The Pesticide Management Bill is expected to be passed into crop insurance in advance. Crop Insurance aims at
law in 2022. With its passage will come greater supporting, sustainable production in agriculture sector by
governmental control over the production, sale, and use of way of, providing financial support to farmers suffering crop
pesticides. With regards to the introduction of new-age loss / damage arising out of unforeseen events and stabilizing
farming technologies - the government has already taken the income of famers to ensure their continuance in
significant steps in the right direction. One hopes to see more farming. It would be interesting to see if crop insurance can
focus from government in pushing regulatory bodies to herald a change in the Indian General Insurance Industry.
facilitate faster introduction of newer technologies for the
References:
farmers, as a follow up step of its initiatives in the last year.
To its credit, the government has paved the way for use of 1. https://timesofindia.indiatimes.com/blogs/voices/
buoyed-by-favourable-policies-new-age-technologies-
drones in agriculture. Globally, drones have proven their
and-booming
efficacy in fertilizing and protecting crops more efficiently.
2. https://www.india.com/business/budget-2022-what-
The sustainability will be a vital lens to view the progression
does-agriculture-sector
of Indian agriculture from here.
3. https://www.financialexpress.com/economy/pradhan-
Globally, there is a palpable shift underway in favor of mantri-fasal-bima-yojana-pmfby-being-revamped-from-
environment-friendly farming practices. One of the greatest kharif-2022-
hindrances to the Indian agricultural sector - that most Indian 4. https://www.niti.gov.in/strengthening-indian-agriculture-
farmers own an average of 2.6 acres of land - presents a ecosystem
difficult challenge to increasing farm output and profitability. 5. https://www.maximizemarketresearch.com/market-
Farms of such size cannot be as efficient as large farms. The report/india-non-life-insurance
Indian non-life insurance industry is driven by the rising 6. IRDAI Annual Report 2020-21
demand for many associated sectors, for example, the 7. Newspapers & Journals

28 The Insurance Times, July 2022