Reimagining Crop Insurance for Small Farmers
- Technology
- Finance
- Sustainability
- AI
- Public Policy
Executive Summary
Guided improvements in India’s crop insurance program to boost risk protection.
Background
PMFBY, launched in 2016, is one of the largest crop insurance schemes globally.
It helps farmers manage risks from natural disasters and climate impact. The program covers over 290 million applications annually.
The Challenge
- Farmer participation declined due to delayed claims and transparency issues.
- Many states faced fiscal strain, high premiums, and low compensation.
- Yield estimation and tech adoption remain weak across regions.
- Coordination gaps exist among insurers, banks, and governments.
Research Approach
- Benchmarking against legacy schemes like NAIS and WBCIS.
- Root cause analysis based on policy, execution, and feedback data.
- Case studies from states such as Haryana informed findings.
- Theory of Change framework outlined improvement pathways.
Key Insights
- Claim delays linked to late premium payments and CCE inefficiencies.
- Low awareness, especially among marginalized farmers and women.
- Premium and compensation gaps threaten equity and sustainability.
- Digital tech like satellite and drone use can modernize processes.
Recommendations
- Fast-track digital tools for claims and yield estimation.
- Simplify enrollment and widen awareness for underserved groups.
- Set up centralized grievance and claim transparency systems.
- Ensure timely subsidies and regionally tailored insurance offerings.
Outcome
- Delivered a data-backed roadmap for better enrollment and transparency.
- Supported policymaker sessions with rigorous analysis and local data.
- Established a foundation for digital and inclusive program evolution.