Iffco Tokio to introduce weather index for insurance

Iffco Tokio General Insurance Company is planning to introduce a satellite-based weather index for weather insurance by using grant from the International Labour Organisation (ILO).

It will also roll out a cattle insurance scheme using Radio-frequency identification (RFID) technology under the grant by the end of this fiscal.

N K Kedia, director, marketing, Iffco Tokio, said, the current weather insurance information provided by the India Meteorological Department (IMD) had several shortcomings like use of primitive technology with manual intervention, inadequate historical data bank, and delay in reporting.

"A satellite-based weather index would take into account factors like image of foliage, type of soil and moisture data, along with temperature variations," he said.

Iffco Tokio , which had a gross written premium (GWP) of Rs 1,515 crore last fiscal, expects to have the premium income close to Rs 1,650 crore this fiscal.

While the company would not be bullish on corporate health and property insurance, it would focus on motor and health insurance, said Kedia.

Last fiscal, the share of motor insurance premium in GWP for the company was 45 per cent and health was 9 per cent.

Iffco Tokio will also enhance its distribution network by using the cooperative institutions in rural areas as points of sale.