The report shares insights gleaned from thorough assessments of existing government-led agriculture insurance schemes, innovative pilot initiatives, and recommendations for a way forward.

The agriculture sector is a fundamental pillar of our nation's economy, making a substantial contribution to our GDP (approximately 23%). Its importance also lies in its potential to serve as a key player in ensuring food security and reducing poverty. However, this sector is vulnerable to significant risks, particularly those exacerbated by climate change and natural disasters. In light of these challenges, the importance of agricultural insurance cannot be overemphasized. In Pakistan, the agriculture insurance landscape is underdeveloped, constituting only 2% of the total non-life sector premiums. Government-led insurance schemes in the country, cover around 14% of farmers, out of a total population of approx. 8.2 million, and hence need reassessment and enhancement. The report provides a thorough review of these schemes and highlights the underlying challenges.

Recognizing the vital importance of agricultural insurance by policymakers at the governmental level is instrumental in advancing broader national goals, including ensuring food security, financing disaster risks, promoting rural development and fostering economic stability. The report suggests incorporating agricultural insurance in the disaster risk financing strategy of Pakistan, the national policy on food security, and its potential integration into existing social protection initiatives like the Benazir Income Support Programme (BISP). By improving the current schemes, formation of coinsurance pools/ consortiums, launching crop and livestock insurance schemes at the national level under a public and private partnership model, and integrating agricultural insurance into broader national agendas, we can pave the way for a more resilient and prosperous agricultural sector. The report also highlights the need for leveraging technology, innovative products, and data-driven approaches to enhance coverage of crop and livestock insurance in Pakistan.

This report is a foundational document to initiate meaningful engagement and foster constructive discussions among the key stakeholders including SECP; the insurance industry experts; and the federal and provincial finance and agriculture ministries

Source - https://www.secp.gov.pk