Crop insurance schemes have been introduced in India since 1972. Historically, these schemes have been associated with high premiums, delays in CCE, and delay or non-payment of claims. In 2016, the Government of India launched PMFBY that aimed to increase crop insurance penetration through farmer awareness, technology adoption, and low premium rates.
The crop insurance ecosystem in India is a diverse system with participants including the government, the insurer and distributors, who together serve the farmers. Several factors such as data accuracy, manual processes, reach-out to remote areas, and lack of awareness of insurance pose a challenge to the participants.
Digital technology is gradually emerging as a backbone to connect these participants seamlessly. Use of tools can play a transformative role with: