India - Crop Insurance Non-Lending Technical Assistance : Summary of Policy Suggestions

World Bank

dc.creator	World Bank
dc.date	2012-03-19T10:12:34Z
dc.date	2012-03-19T10:12:34Z
dc.date	2011-04-01
dc.date.accessioned	2023-02-17T20:41:07Z
dc.date.available	2023-02-17T20:41:07Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000386194_20110503030736
dc.identifier	http://hdl.handle.net/10986/2749
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/243118
dc.description	At the request of Government of India (GOI), the World Bank has provided technical assistance to the public insurance company, Agriculture Insurance Company of India (AICI) to develop an actuarially sound rating methodology and improve the contract design of the area-yield based National Agriculture Insurance Scheme (NAIS) to reduce delays in claim settlement; to design and ratemaking of new weather index insurance products under the weather based crop insurance scheme; and to perform a risk assessment of AICI's insurance portfolio and to suggest cost-effective risk financing solutions (including reinsurance). Crop insurance can contribute to increasing access to rural finance and is required to ensure a more viable agriculture credit business. An improved crop insurance program supports and complements other critical agriculture sector related measures, including the reform of rural credit cooperatives, agriculture marketing reforms and efforts to improve agriculture extension and productivity. A better understanding of risks entailed in particular crops in particular areas which can be ascertained through assessing the actuarially sound insurance premium rates for the crop can also be a significant input to agriculture policy at sub-national and national levels. Similarly, crop insurance is vital for creditors, such as banks and rural cooperatives, which otherwise face significant risks in agriculture lending that are otherwise difficult to price given political economy factors and the underlying fragile economics of agriculture. The inherent risks in agriculture in India with its high degree of dependence on rain-fed cultivation, a well developed and widely used agriculture insurance program is critical from a farmer perspective. Without this, farmers run the risk of crop failures, which in turn, lead to inability to service their debts. Since crop cycles often follow seamlessly from one season to the next, delinquency on account of one crop could mean being ruled out of the formal banking system for the next crop cycle.
dc.language	English
dc.publisher	World Bank
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCESS TO RURAL FINANCE
dc.subject	AGRICULTURAL INSURANCE
dc.subject	AUDITING
dc.subject	AUDITS
dc.subject	BANKING SYSTEM
dc.subject	BANKS
dc.subject	BASIS RISK
dc.subject	BORROWING
dc.subject	BUDGET MANAGEMENT
dc.subject	BUDGETING
dc.subject	CAPACITY BUILDING
dc.subject	CASH FLOW
dc.subject	CATASTROPHE LOSS
dc.subject	CATASTROPHIC LOSSES
dc.subject	CENTRAL GOVERNMENTS
dc.subject	CLAIM PAYMENT
dc.subject	CLAIM PAYMENTS
dc.subject	CLAIMS PROCESSING
dc.subject	CONTINGENT DEBT
dc.subject	CONTINGENT LIABILITY
dc.subject	CONTRACT DESIGN
dc.subject	COST-SHARING
dc.subject	COVERAGE
dc.subject	CREDIT COOPERATIVES
dc.subject	CREDITORS
dc.subject	CROP FAILURE
dc.subject	CROP FAILURES
dc.subject	CROP INSURANCE
dc.subject	CROP INSURANCE SCHEME
dc.subject	DEBT
dc.subject	DEBTS
dc.subject	DIRECT CREDIT
dc.subject	DISASTER
dc.subject	DISASTER REDUCTION
dc.subject	FACTORING
dc.subject	FARMER
dc.subject	FARMERS
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL LIABILITY
dc.subject	FINANCIAL STRESS
dc.subject	FINANCIAL SUSTAINABILITY
dc.subject	FORMAL BANKING
dc.subject	FORMAL BANKING SYSTEM
dc.subject	GLOBAL CAPITAL
dc.subject	GLOBAL CAPITAL MARKET
dc.subject	GOVERNMENT FINANCING
dc.subject	GOVERNMENT SUBSIDIES
dc.subject	GOVERNMENT SUBSIDY
dc.subject	HOUSEHOLDS
dc.subject	INDEMNITIES
dc.subject	INDEMNITY
dc.subject	INDEMNITY PAYMENT
dc.subject	INDEMNITY PAYMENTS
dc.subject	INFORMAL CREDIT
dc.subject	INSTITUTIONAL CAPACITY
dc.subject	INSTITUTIONAL CAPACITY BUILDING
dc.subject	INSTRUMENT
dc.subject	INSURABILITY
dc.subject	INSURANCE COMPANY
dc.subject	INSURANCE POLICY
dc.subject	INSURANCE PREMIUM
dc.subject	INSURANCE PREMIUM RATES
dc.subject	INSURANCE PREMIUMS
dc.subject	INSURANCE PRODUCT
dc.subject	INSURANCE PRODUCTS
dc.subject	INSURER
dc.subject	INSURERS
dc.subject	INTERNATIONAL STRATEGY FOR DISASTER REDUCTION
dc.subject	LANDSLIDE
dc.subject	LINE OF CREDIT
dc.subject	LOAN
dc.subject	LOAN FACILITY
dc.subject	LOSS RATIO
dc.subject	MARKET INFRASTRUCTURE
dc.subject	MARKET SHARES
dc.subject	MOBILE PHONE
dc.subject	MORAL HAZARD
dc.subject	OUTREACH
dc.subject	POLITICAL ECONOMY
dc.subject	PORTFOLIO
dc.subject	PORTFOLIO RISK
dc.subject	PRIVATE REINSURANCE
dc.subject	PRODUCTIVITY
dc.subject	PROGRAMS
dc.subject	PUBLIC INSURANCE
dc.subject	REINSURANCE
dc.subject	REINSURANCE MARKETS
dc.subject	REINSURERS
dc.subject	RESERVES
dc.subject	RETURN
dc.subject	RISK ANALYSIS
dc.subject	RISK CAPITAL
dc.subject	RISK EXPOSURE
dc.subject	RISK MITIGATION
dc.subject	RISK PROFILE
dc.subject	RISK SHARING
dc.subject	RISK TRANSFER
dc.subject	RURAL CREDIT
dc.subject	RURAL CREDIT COOPERATIVES
dc.subject	RURAL FINANCE
dc.subject	SETTLEMENT
dc.subject	SOCIAL WELFARE
dc.subject	STOP LOSS REINSURANCE
dc.subject	SUSTAINABILITY
dc.subject	TECHNICAL ASSISTANCE
dc.subject	TRANSACTION
dc.subject	TRANSPARENCY
dc.subject	TRANSPORT
dc.subject	VILLAGE
dc.subject	VILLAGES
dc.title	India - Crop Insurance Non-Lending Technical Assistance : Summary of Policy Suggestions
dc.type	Economic & Sector Work :: Other Agricultural Study
dc.coverage	South Asia
dc.coverage	South Asia
dc.coverage	Asia
dc.coverage	India