Principal Secretary to Prime Minister highlights India's potential in disaster risk insurance at NDMA's workshop
P
K Mishra Principal Secretary to the Prime Minister highlighted India's endeavors and key developments in the space of insurance products / bonds and technology for assessing damage and loss, while addressing the National Disaster Management Authority's (NDMA) Workshop on "Why Disaster Risk Insurance Matters - Key Concepts and Benefits" on Friday in Delhi.
P K Mishra highlighted India's potential to innovate in its application of disaster risk insurance and join the global trend toward more resilient, efficient and inclusive insurance solutions.
Expressing concern on an increase in the frequency and intensity of disasters globally, including in India, Mishra advocated for a strategic vision for expanding insurance coverage across diverse sectors and entities. He underscored the need for a robust actuarial expertise and a well-defined legal framework.
In the context of these emerging trends in expanding insurance coverage, he structured his deliberation on two critical issues. Firstly, how can we effectively reach those segments of the population who find it difficult to purchase insurance? This raises questions of accessibility - how can we broaden insurance reach through more affordable pricing, increasing awareness, and simplifying the claims settlement process? He suggested that ensuring that insurance is not only available but also accessible to the most vulnerable is a key challenge that we must tackle, said an official statement
Secondly, what role should the government play in supporting the expansion of insurance? Should the government act as a catalyst, facilitating the growth of the insurance market, or should it take a more direct role, such as purchasing insurance for certain sectors? How should the government create public-private partnerships that improve the outreach of insurance services and products? These crucial questions directly relate to the fiscal sustainability of insurance-related interventions, the statement added.
Elaborating on PM Modi's vision and commitment to the subject, Mishra delved on an all-inclusive ten-point agenda on Disaster Risk Reduction (DRR) in 2016.
Mishra mentioned two notable government-backed insurance programmes, Pradhan Mantri Fasal Bima Yojana (PMFBY) and Ayushman Bharat. Mishra said that the PMFBY focuses on the agriculture sector, offering affordable crop insurance to farmers, thereby safeguarding their income from crop losses due to natural disasters. He further added that this scheme supports farmers' livelihoods and enhances resilience in rural areas.
On Ayushman Bharat which provides health insurance coverage to economically disadvantaged individuals, ensuring access to quality healthcare and reducing out-of-pocket expenses, Mishra said that both these initiatives are central to the government's broader agenda of promoting social equity, financial inclusion, and household-level risk management, demonstrating the critical intersection of insurance with development goals.
Mishra strongly stressed that globally the development of diversified insurance products for disaster risks is gaining momentum. In this endeavor, he further added that, NDMA and Department of Financial Services' (DoFS) diverse outreach to global and domestic, private and public institutions in order to gain deeper insights into these financial structures will surely assist in building a robust disaster insurance market in India.
PK Mishra concluded his deliberations, he suggested for diverse insurance solutions, as he underlined need for sustainability at its core - providing insurance to an ever-expanding group at affordable rates, while maintaining a growing and viable risk pool.
✔️ Principal Secretary to Prime Minister highlights India's potential in disaster risk insurance at NDMA's workshop
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