P K Mishra, Principal Secretary to the Prime Minister, emphasized India’s growing role in disaster risk insurance during the National Disaster Management Authority’s (NDMA) workshop on Friday. Addressing the event titled “Why Disaster Risk Insurance Matters – Key Concepts and Benefits” in Delhi, Mishra outlined key developments in insurance products and the use of technology for assessing damage and loss in disaster-prone areas.
Mishra underscored India’s potential to innovate and lead the global push towards resilient, efficient, and inclusive disaster risk insurance solutions. He expressed concern over the increasing frequency and intensity of natural disasters, both globally and in India, calling for a comprehensive strategy to expand insurance coverage across sectors. This, he noted, would require robust actuarial expertise and a well-defined legal framework.
During his address, Mishra focused on two critical challenges. First, he questioned how insurance could be made accessible to vulnerable populations who find it difficult to afford coverage. He stressed the need for affordable pricing, increased awareness, and simpler claims processes to ensure that the most vulnerable are protected.
Secondly, Mishra explored the government’s role in fostering insurance growth. Should the state act as a facilitator, enabling public-private partnerships, or take a more direct role by purchasing insurance for specific sectors? He argued that the government’s involvement in disaster risk insurance is essential for ensuring fiscal sustainability and expanding insurance outreach.
Drawing on Prime Minister Modi’s 2016 ten-point agenda on Disaster Risk Reduction (DRR), Mishra referenced two key government-backed insurance schemes: the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Ayushman Bharat. The PMFBY provides affordable crop insurance to farmers, safeguarding their livelihoods from natural disasters, while Ayushman Bharat offers health insurance to economically disadvantaged individuals, reducing healthcare costs and promoting access to quality services. Both initiatives, Mishra noted, are central to the government’s mission to promote social equity and financial inclusion.
Mishra highlighted that globally, the development of diversified insurance products for disaster risks is gaining traction. He praised the NDMA and the Department of Financial Services (DoFS) for their outreach to both domestic and international institutions, which he said will help India build a robust disaster insurance market.
Mishra stressed the importance of creating sustainable insurance solutions that are affordable yet capable of maintaining a growing risk pool. He reiterated the need to prioritize inclusivity and resilience in India’s disaster risk management efforts.
(Inputs from ANI)