In light of the increasing frequency and severity of global disasters, including those in India, P.K. Mishra, Principal Secretary to the Prime Minister, has called for a strategic vision to enhance insurance coverage across various sectors. Speaking at a National Disaster Management Authority (NDMA) workshop titled “Why Disaster Risk Insurance Matters — Key Concepts and Benefits,” Mishra emphasized the need for accessible insurance for vulnerable populations.
The workshop, held on Friday, provided a platform for Mishra to discuss the government’s potential role in supporting expanded insurance initiatives. He raised pivotal questions regarding the government’s involvement: “Should it act as a catalyst to foster insurance market growth, or take a more direct approach by purchasing insurance for specific sectors? How can public-private partnerships be structured to improve the reach of insurance services?”
Mishra pointed out that these inquiries are closely tied to the fiscal sustainability of insurance-related interventions. He highlighted the necessity for robust actuarial expertise and a clearly defined legal framework.
Addressing emerging trends in insurance coverage, Mishra focused on strategies to effectively reach underserved populations who struggle to afford insurance. He remarked on India’s opportunity to innovate in disaster risk insurance, aligning with global trends toward more resilient and inclusive insurance solutions.
He stressed the importance of broadening insurance accessibility through affordable pricing, increased public awareness, and a streamlined claims process. Drawing on Prime Minister Narendra Modi’s vision, Mishra presented a comprehensive 10-point agenda for Disaster Risk Reduction (DRR).
Mishra asserted that disaster risk coverage is essential for all demographics, from impoverished households to multinational corporations. He cited two government-backed initiatives—the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Ayushman Bharat—as central to promoting social equity, financial inclusion, and household risk management, thereby linking insurance with broader development goals.
He urged the exploration of large-scale disaster risk insurance solutions to address the significant protection gap within this underinsured sector. This would entail developing tailored insurance products for a variety of stakeholders, including households, small businesses, and various levels of government.
Highlighting a critical challenge, Mishra noted that the financial viability of these insurance mechanisms relies on effective risk distribution. He acknowledged the growing global momentum behind diversified disaster risk insurance products.
Finally, Mishra encouraged the NDMA and the Department of Financial Services to engage with both domestic and international institutions, leveraging their insights to strengthen India’s disaster insurance market. He reiterated the need for sustainable insurance solutions, aiming to provide coverage to an ever-expanding demographic at affordable rates while maintaining a viable risk pool.
