Mumbai: Despite rising competition in the weather and crop insurance space, state-owned Agriculture Insurance Company (AIC) is hopeful of retaining its leadership position in the agriculture insurance segment and aims to reach a premium target of over Rs 4,000 crore next fiscal.
The company expects to close the current fiscal with a premium collection of Rs 3,500 crore, up from Rs 3,300 crore in FY13.
"We have a market share of around 60 percent in the agriculture insurance space as of now. Despite the rising competition, we hope to maintain our leadership next fiscal," AIC general manager Rajeev Chaudhary said over the weekend.
More number of private players are entering the weather and crop insurance segment as Central and state governments push for insurance cover for crops to protect farmers from the vagaries of nature.
While there are seven players in this agri-insurance space as of now, three more are likely to join from next fiscal taking the number to 10, analysts say.
AIC, which is promoted by General Insurance Corporation (GIC), NABARD and the four public sector general insurers, had a premium collection of Rs 3,300 crore in FY13.
"We hope to end this financial year with Rs 3,500 crore premium collection. As far as next fiscal is concerned, our premium collection is likely to be above Rs 4,000 crore," Chaudhary said.
As per the company, the newly introduced National Crop Insurance Programme (NCIP) by the Centre replacing the National Agriculture Insurance Scheme (NAIS) will help his company drive growth this financial year.
First Published: Sunday, March 23, 2014, 12:21