Crop insurance to see growth from 2024 onwards

The agriculture insurance sector is likely to register growth from 2024 onwards, with an average real premium growth of 2.5 per cent over the medium term, according to the Economic Survey 2023-24.

The survey, tabled in Parliament on Monday, noted that agriculture insurance, accounting for about 12 per cent of the non-life insurance market, witnessed flat growth in FY23 due to a sharp decline in premium rates in the Kharif cropping season.

However, this decline was more than offset by increased insured land area and farmer enrolments during the season, it added.

"Agriculture premiums will likely rise from 2024 onwards, with an average real premium growth of 2.5 per cent over the medium term, supported by improvements in insurance infrastructure such as mobile applications and remote sensing for crop loss monitoring," the survey said.

To address current concerns around crop insurance, the government has launched various technological initiatives. These include the YES-Tech Manual, WINDS portal, and enrolment app AIDE/Sahayak to assess crop damage via satellite-based advanced technologies.

The survey also highlighted door-to-door enrolment initiatives aimed at making crop insurance more accessible to farmers.

These measures are expected to enhance the efficiency of crop damage assessment and improve the overall accessibility of agricultural insurance in the country.

Currently, the government is implementing Pradhan Mantri Fasal Bima Yojana and the Weather Based Crop Insurance Scheme.