India’s Agriculture Insurance Company (AIC) is in discussions with intermediaries about the launch of crop reinsurance services in countries outside of India, reports Business Standard.
According to reports, government-owned AIC has already received approval from the IRDAI (International Regulatory and Development Authority of India) for inward insurance, and is now in discussions with intermediaries with a view to launch the product by January of next year.
Business Standard reports that the firm is initially looking to launch its crop reinsurance services in Nepal, Sri Lanka, Philippines, and Bangladesh, all of which rely heavily on agriculture for social and economic soundness and development.
Speaking with Business Standard, Managing Director and Chairman of AIC, Rajeev Chaudhary, said: “Our solvency ratio is 2.99 compared to the regulatory need of 1.5 and our capital base is over Rs 3500 crore. Given our expertise in crop insurance, we want to help other developing countries. We feel we are well equipped to provide reinsurance support to them.”
The crop re/insurance market in India continues to flourish after the introduction of Pradhan Mantri Fasal Bima Yojna, the domestic crop insurance scheme. While more and more private companies have entered the Indian crop market, raising competition, AIC still controls roughly 50% of the market.
The firm was established by the government in order to implement the then flagship crop insurance scheme, the National Agricultural Insurance Scheme (NAIS).
“In medium term, AIC would be diversifying to offer insurance products for other allied activities in agriculture, viz, cattle, farm equipment fisheries and poultry insurance. Besides, the company is also planning to launch insurance products for commercial and plantation crops. We want to make AIC one stop solution for all the insurance needs of farmers,” continued Chaudhary.