Universal Sompo General Insurance, the Indian subsidiary of Sompo Japan, have announced a move to launch weather insurance micro-finance products to the Indian agriculture market. Universal Sompo is a joint venture between Indian bank and investment companies and the huge Japanese insurer. They plan to leverage their massive branch and agent network (4,000 odd) to broaden it’s reach and presence.
The weather insurance products will be initially aimed at the farming sector, a sector which has some competition now, but we expect to see that broaden to other industries in the future.
It’s incredible to see the flourishing of weather risk management products in India, the application of micro-financing techniques is proving successful and allowing a much poorer demographic to protect itself against the vagaries of the weather.