Combining forces for the resounding success of PMFBY
Source: Asia Insurance Review | Jan 2018
With the introduction of Pradhan Mantri Fasal Bima Yojana (PMFBY) two years ago, a scheme which is very much in the interest of farmers and which has given the biggest boost in premium earnings for Indian insurers, there is a significant capacity that is required from reinsurers to enable insurers to support in the role expected of them.
The four main players involved in the scheme are the Government of India, the states, Indian insurers and reinsurers, particularly – GIC Re. As each of the main players have expectations of their own, a Seminar was organised and hosted by International Reinsurance And Insurance Consultancy And Broking Services Pvt Ltd (IRICBS) in October last year to get everyone together at one platform so that each of them got a better understanding of the expectations from the others.
The chief guest for the seminar was Dr P K Mishra, Additional Principal Secretary to the Prime Minister of India and the Keynote Address speaker was Dr A K Bhutani, Joint Secretary, Ministry of Agriculture and Farmers Welfare, Government of India.
Well attended by all stakeholders
Participation was wide ranging from all the stakeholders, with eight representatives from Central Government and State Governments, one representative from IRDAI, around 50 from insurers and 40 from reinsurers.
The discussions at the seminar were well received by all participants. In addition to the seminar, arrangements were in place for reinsurers to personally witness the methodology employed in conducting Crop Cutting Experiments (CCEs) which has undergone a significant improvement following stipulations under the PMFBY scheme. In all, over 25 reinsurers participated in CCEs which were conducted in the states of Haryana and Rajasthan. A
By Fali A Poncha, Executive Chairman, IRICBS Pvt Ltd