Domestic, foreign insurers big gainers under PMFBY; pool mechanism on cards

With insurance and reinsurance firms, particularly foreign reinsurance and private insurance firms, turning out to be big beneficiaries of premiums collected under the Pradhan Mantri Fasal Bima Yojna (PMFBY), the government is considering creating a pool mechanism for claim settlements. 

In the last six seasons, close to Rs 5,000 crore has flown to the books of foreign reinsurers, as overall claim ratio has been just around 77 per cent, which has led the government to rethink the involvement of reinsurance companies in the business, a senior government official said. 

Data from PIB also corroborates this. 

In the 2016-17 and 2017-18