Insurance coverage can reduce the vulnerabilities of the agricultural industry and technology is enabling affordable and innovative insurance policies for the sector.
FREMONT, CA: Technology is dramatically changing the conventions of farming. Though slow, agri-tech companies are finally here. The insurance industry has a chance to improve its engagement with the agricultural sector. Technology seems to have answers to the present agricultural insurance-related issues such as cost and accessibility, among others.
Better farm management with the help of software, smarter irrigation, precision agriculture, use of sensors, drone surveys, and satellite imagery have been bringing about transformation in agriculture. Together, these applications imply that now the insurance industry can have better services. The main issues against which agriculturists need insurance is climate change and natural calamities, and supply chain-related losses. Real-time data from satellites are now replacing reliance on trend-based data. This helps predict and reduce risks, thereby making a case for insurance products.
The software-based supply chain has enhanced management and visibility. This means reduced risks and better capabilities. The insurance industry can take advantage of this progress to design and deliver solutions at better prices and digital mediums. Insurance companies can innovate and make their products accessible through delayed premium payment options and digital loans.
Recognizing the need of the agricultural industry regarding insurance products and deploying the right technology to make insurance feasible is the right way forward. An exclusive agri-insurance market which creates competitive, farmer-centric insurance products can be beneficial to both insurers as well as farmers. Features like automated farming risk underwriting solutions, claims-handling tools and equipment repair policies and a general, customizable insurance covering farming activities can find a lot of relevance.
The farming community faces a lot of perils and often finds itself in vulnerable positions due to highly unpredictable factors of weather and market. As technology is assisting in increasing productivity, insurance can help in safeguarding the income and lives of poor as well as well-to-do farmers all across the globe.