The Asia-Pacific region is seeking to stabilise agricultural insurance following droughts. Reduced rainfall in Australia caused over $1bn in economic damage last year, with crop production down 20% YoY. In response, Australia is considering exempting insurance premiums from tax, along with an AUD2bn ($1.4bn) relief package. But the Australian government has also been criticised for its handling of a drought that hit Queensland and New South Wales earlier this year. Meanwhile, India is encouraging the implementation of multi-year insurance deals, while Thailand is offering free insurance and financial education to farmers. Consequently, increased government investment is leading to more robust insurance schemes.
The Asia-Pacific region is seeking to stabilise agricultural insurance following droughts. Reduced rainfall in Australia caused over $1bn in economic damage last year, with crop production down 20% YoY. In response, Australia is considering exempting insurance premiums from tax, along with an AUD2bn ($1.4bn) relief package. After drought and unseasonal frost in 2018, China's government may pool its agricultural insurance schemes to remove the division of risk. Meanwhile, India is encouraging the implementation of multi-year insurance deals, while Thailand is offering free insurance and financial education to farmers. Consequently, increased government investment is leading to more robust insurance schemes.