Pivotal Push for Universal Disaster Risk Insurance Coverage

Principal Secretary to the Prime Minister, PK Mishra, emphasized universal disaster risk insurance coverage as part of PM's 10-point agenda for Disaster Risk Reduction. During a workshop, industry experts explored the challenges and opportunities in designing diverse insurance products. Union Home Secretary Govind Mohan highlighted the growing need for integrating insurance into disaster management strategies.

Principal Secretary to the Prime Minister PK Mishra on Friday underscored the need for universal disaster risk insurance coverage, a key point in the prime minister's 10-point agenda for Disaster Risk Reduction announced in 2016.

Speaking at the workshop 'Why Disaster Risk Insurance Matters,' organized by the National Disaster Management Authority (NDMA) and the Department of Financial Services (DoFS), Mishra discussed the complexities in developing insurance products suitable for India's diverse hazard landscape, emphasizing the importance of co-variability.

Mishra highlighted the success of the PM Fasal Bima Yojana despite initial challenges in insuring undeveloped crops. He proposed spreading risk both geographically and temporally, and leveraging technology to mitigate moral hazards and adverse selection.

Union Home Secretary Govind Mohan stressed integrating insurance into disaster management, citing increased disaster frequency and intensity. He praised the NDMA and DoFS for exploring innovative solutions like parametric insurance and catastrophe bonds, urging states and Union territories to advance disaster insurance initiatives.

The workshop included sessions on global and Indian risk pool examples, integrating catastrophe bonds into India's disaster finance profile, designing parametric insurance products, and developing disaster insurance databases.

The event featured prominent speakers including NDMA member Rajendra Singh, advisor Safi Ahsan Rizvi, Dr Krishna S Vatsa, Lt Gen Syed Ata Hasnain, and DoFS Additional Secretary MP Tangirala.

(With inputs from agencies.)