The NLTA produced the following key outputs and milestones:
- Formulation of a best-practice, country-specific, actuarially sound premium determination methodology (2007-10) and product design to address farmer risk mitigation helped improve the main existing crop insurance program.
- Policy formulation and piloting of an improved crop insurance program in 50 districts (an estimated 400,000 farmers have participated in the first crop season)
- Review of India’s crop insurance program (including underwriting and ratemaking (2007)
- Development of commercial weather-based crop insurance products, which led to an increase of the public insurer's weather-based crop insurance portfolio to almost 1 million farmers and a total annual premium volume in excess of US$50 million (2009-10)
- Development of the public insurer’s capacity to transition to a market-based approach (2007-11) and increased involvement of private insurance and reinsurance market in crop insurance
- Policy dialogue on the fiscal and welfare implications of the improved program (2007-11)
- Prototype actuarial software and pricing of more than 200 insurance products, and advice on mobile and remote sensing technology to improve data quality and timeliness (2009-11).
The main contribution of the World Bank has been through highly specialized technical and operational advice to the client, including through drawing on national and bringing in international best practices and other country experiences. The NLTA has been supported through the Bank budget supplemented by trust funds (total cost around US$1 million).
While the direct client of the NLTA is AICI, the ultimate beneficiaries are India’s farmers. The benefits to farmers come from a better insurance product, greater product options, faster claims settlements and more equitable pricing. Better understanding of risks – through the actuarial premium rates – can facilitate more appropriate agriculture policy and agriculture extension services, thereby improving farmer cropping patterns and productivity.