DIGITIZING CROP INSURANCE: UNVEILING OPPORTUNITIES, OBSTACLES, AND CHARTING THE FUTURE OF CROP INSURANCE

Abstract

About 16% of India's GDP comes from agriculture. The government has fostered an ecosystem to offer farmers insurance and loans to reduce the risks connected with farming. Indian insurers play a major role in the environment surrounding agriculture. Crop insurance is the third-biggest business segment for general insurers. The percentage of farmers insured by insurance is approximately 22%, while the percentage of gross cropped area is approximately 30%. This gives insurers a fantastic opportunity to expand. The quick adoption of technological solutions to improve insurance operations' efficiency will surely be a major enabler.

Digitalization of crop insurance streamlines the workflow and reduces manual labor. This can lead to significant efficiency gains and productivity improvements. The sudden shifting of traditional mechanisms to digitalization brings many more opportunities to the farmers, on the other hand, farmers will face a lot of obstacles. In this background, the present research has been undertaken to unveil the opportunities, and challenges of digitizing crop insurance and also tries to chart the future of digitalized crop insurance.