Agriculture plays a vital role in the world economy. Majority of the population in the world depends upon Agriculture for their livelihood. It is one of the largest contributors to the Gross Domestic Product (GDP). Farmers are exposed to various risks due to uncertain climatic conditions such as drought, flood, cyclone etc., which impact farm’s yield, conditions of livestock/cattle and farmer’s income. Thus, Agriculture Insurance provides risk mitigation for these unforeseen losses.
Agriculture Insurance consists of following major classes:
- Crop Insurance
- Livestock Insurance
- Aquaculture (Fisheries) Insurance
- Forestry Insurance
Crop Insurance – Majorly, crop insurance consists of two types of covers:
The Index based Crop Insurance Cover can be further subdivided into:
- Indemnity/Yield based Crop Insurance Cover
- Parametric/Index based Crop Insurance Cover
- Weather Index based Crop Insurance Cover
- Vegetative Index based Crop Insurance Cover
Livestock Insurance – Livestock Insurance protects farmers from any unforeseen financial loss in the event of death of their animal(s) due to natural death and/or Permanent Total Disability. It proves to be a life saver by providing financial assistance when it is required the most.
There are essentially two types of covers that can be purchased for insuring livestock against mortality.
In addition to the above, farm operators can also insure against the risk of forced government slaughter orders. This risk is not automatically covered and needs to be purchased as an addition to either of the above. It is available depending on where the farms are situated and on the country’s track record with forced slaughters. It is also expensive.
- The first is the All Risks of Mortality, which is the broadest level of coverage that can be purchased. It is all risks coverage, including disease.
- The second is a more basic form called Restricted Perils and tends to only cover risks such as fire, earthquake, flood, typhoon and other natural perils. It does not cover against the risk of disease.
At J. B. BODA, we are providing end-to-end solution on agriculture insurance to our clients across the globe. Major services are:
- Technical Guidance for designing of the products for Index Based Insurance and Yield based Insurance
- Professional risk management consulting with an insurance solution for Crops against adverse conditions
- Reinsurance strategy and Model based on the client requirements
- Placement of Facultative and Treaty programmes with domestic as well as International Reinsurers
- Technical guidance for calculation of claims for Weather Index Based Crop Insurance as well as Yield based Insurance based on policy information
- Professional risk management consulting with an insurance solution to protect against mortality and physical losses
- Realizing that insurance pricing is a key factor and concern for farm operators, our approach is to work closely with farms to ensure that their operations are properly profiled to insurers
- We work to assist farms in obtaining a comprehensive insurance coverage
- Placement of Facultative and treaty programmes with domestic as well as International Reinsurers
- Technical guidance for designing tailor made products based on requirement of client