AIC to appoint consultant to rejig business strategies

AIC wants to reposition itself as crop insurance is turning out to be a market-based product

With crop insurance turning out to be a market-based product, one of the oldest public sector insurer, the Agriculture Insurance Company (AIC), is facing a conflict of interest with its promoters — four public sector companies. AIC has floated tenders for appointment of consultants to formulate new business strategies for itself and reposition itself in the market.

Before the roll out of Pradhan Mantri Fasal Bima Yojna (PMFBY) previous year, AIC was the nodal agency for implementing crop insurance in the country, commanding almost 100 per cent market share.

General Insurance Corporation of India holds 35 per cent stake, National