New Delhi: Private insurer ICICI Lombard has said that it is in the process of developing a product for natural calamities like the floods in Bihar.
“For the situations like Bihar floods, we will soon be offering catastrophe products. We are in the process of developing the same,” Pranav Prashad, Head-Rural Vertical, ICICI Lombard said.
He said: “For the farmers, we do offer products like Weather Insurance, Cattle Insurance and Health Insurance”. These policies cover a certain amount of financial losses suffered by the subscriber.
On the market size of the rural insurance sector and the share of ICICI Lombard, Prashad said: “We are pioneers in offering insurance products for the rural masses in India. This is part of the company’s focus of financial inclusion and reaching out to the socio-economically challenged as well as those located in the remote areas of the country.”
He further said that general insurance contributes only 0.6% of the country’s GDP. “This effectively means that the benefits of insurance services are yet to reach the majority of the country’s population. As India’s leading private sector general insurance company, our effort is to raise its GDP contribution to over 1%,” he added.
On the exposure of rural economy to fundamental risks, Prashad said that it had limited access to appropriate risk mitigating solutions.
“ICICI Lombard is committed to driving the penetration of general insurance in the rural markets by building a cost-effective distribution model with relevant products at the right price and a customer support footprint that is able to service a geographically dispersed customer base,” he informed.
On rural health insurance sector, he said it was a key focus area for ICICI Lombard given the labour-intensive nature of the agrarian economy.
“The distribution of biometric health insurance smart cards as part of our health scheme has set the foundation for wider financial inclusion and an efficient distribution network to enable the rural populace to avail of other financial services in future. ICICI Lombard holds a market share of 12-13% in the rural insurance sector,” he added.
Asked about the number of states where the company is offering its products in rural areas, he said that ICICI Lombard offered insurance products in rural areas of Rajasthan, Punjab, Haryana, Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra, Orissa, West Bengal, Uttar Pradesh and Madhya Pradesh.