Iffco Tokio have announced today that they are expanding the availability of their Barish Bima Yojna insurance product to further districts. The product, designed to protect farmers crops from either deficit or excess rainfall, has been well received and should serve as a model for others seeking to tap emerging markets with micro-insurance products to protect against weather extremes. This product is particularly good for farmers as it is transparent in that it pays out based on actual rainfall measures at local weather stations.
I’m surprised we haven’t seen an attempt to launch something specifically for crops which protects against wind speeds. Surely someone must be able to create a similar, sustainable microinsurance product to protect these same farmers from high winds (which can be just as damaging as rain to crops) and again base the payouts on an index of wind speeds measured at local weather stations?
Read the full press release here.