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Indian agricultural insurance market ‘ready for transformation through technology’

New Dawn Risk’s report casts light on the improved prospects for international firms as India aims to deploy drones, satellites and mobile technology in an effort to cut insurance costs

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Singapore, November 2nd 2020: Lloyd’s broker New Dawn Risk has today launched its new report: Technology brings new opportunities for India’s crop insurance scheme

The report details changes that have been made to the government-sponsored scheme during 2020, which are designed to make it more efficient and ultimately more attractive for the nation’s farmers and for participating insurers.  These include the introduction of a three-year contract for insurers; and strict rules to both prevent delays in claims handling and avoid moral hazard.

The centre point for change, however, is the introduction of a range of new technologies, including a mobile portal, and the use of sophisticated drone and satellite technologies.  All of these are designed to allow automated handling of the many claims that the scheme generates, and, ultimately have the power to transform the profitability of the scheme for insurers and reinsurers.

Contributing to the report, the Agricultural Insurance Company of India commented: “With the advent of new concepts in agriculture, the scope for crop / agriculture insurance in India is vast. The main challenge is consistency. The scheme has changed drastically in a very short space of time. Reinsurers believe there is ample opportunity but only if they decide to commit to this product for the longer term and take a long-term view despite the changes.”

Max Carter, CEO of New Dawn Risk commented: “India could certainly see new reinsurers entering its state-sponsored agricultural insurance market if costs were driven down for the local insurers, who have previously borne heavy administrative and operating costs.”

“The increased use of satellites and drone imagery technology and adoption of high-quality mobile apps to carry out CCE’s, remote sensing methodologies to assess crops and low-lying satellites (LEOs), means that India has taken positive steps towards increasing efficiency and reducing costs of administration. We hope that, with such positive news, our guide will be a useful source of information for international reinsurers who might consider participating in this refreshed scheme.”

For more information: Victoria Sisson, Luther Pendragon, +44 (0)7941 294872

London, October 27th 2020: The London chapter of PLUS (the Professional Liability Underwriting Society)  met last week for a  webinar to talk through the evolution of the market, in a session entitled “London, You’re on Mute! The New Normal”

In a sign of both the importance of the topic, and the growing usage of virtual events, a record 160 members of PLUS in both London and North America gathered to debate the topic alongside panel members:

  • Julian James, CEO, Sompo International
  • James Masterton, CEO, Ardonagh Specialty
  • Kim Noble, Senior Vice President, Thompson Flanagan
  • Chris Warrior, Head of Commercial Management Liability UK, Berkshire Hathaway Specialty Insurance
  • Brenna Westinghouse, Focus Group Leader and Underwriter, Professions PI, Beazley

The panel was moderated by Max Carter, CEO of New Dawn Risk.

Following the debate, the audience was asked for their views on how the market is currently working, and the results were positive.  Of 160 members polled:

  • Only 14% of respondents wanted to return to work full-time in their office.
  • 16% of respondents said they would want to work mainly at home permanently, while 70% would want to spend half their time in the office.
  • 38% said that they were more productive since Covid-19, 44% said that their productivity had remained the same, and 18% said it had fallen

Max Carter, CEO of New Dawn Risk and Moderator of today’s PLUS webinar commentedThis debate brought broad consensus that the way we work has permanently changed. For an industry that has not historically been known for thriving with technology, the market was able to adapt quickly and continue trading without missing a beat during 2020, and this has helped acceptance.”

“Relationships have been the hallmark of the success of the London Market in the past. If we are to have continued success in the future, we have to find ways not just of maintaining existing relationships in this new working environment, but of forging new ones.”

“The situation that we are currently facing is unprecedented; there is no established playbook or roadmap for navigating our way through it. That’s why events like this week’s PLUS debate are so important. We might not have all the answers, but reaching consensus on the questions we should be asking is an important step in the right direction.”

For more information: Victoria Sisson, Luther Pendragon, +44 (0)7941 294872