elets fips 2014 - avinanda ghosh, deputy general manager & chief information officer (cio),...

Agriculture Insurance Companyof India Limited

presents

ANNAPOORNAa fairytale from

India

“Annapoorna” literally means the Goddess of Bounty

3

33100000 hectares

the land area of Germany

USD 10600 million

the GDP of Madagascar

24200000 farmers

that’s the population of Australia

USD 580.46 million

the annual federal expenses of Guyana

we annually insure

we annually cover

our annual risk commitment our annual gross premium

the scale of operations

The ANNAPOORNA vision

4

why ANNAPOORNA?

5

We are only around 280 of us, but insure around 24 million farmers.

We operate out of only 17 Regional Offices (to keep our mgmt. expenses low), but work with around 150000 Bank branches & Farmers’ Cooperatives at the grassroots level.

We are one of the largest repositories of data, but our database is fragmented (no connectivity) and not normalized (redundancies).

Our activities are time bound, but our manual processes breed time delays.

...that’s why

commerce or service??

6

We transact crop insurance business, seeking to improve the spread (topline) as well as the profits (bottomline), which strengthens our net worth to enable further business.

Are we doing social service??

We serve the poorest and remotest section of society and charge them subsidised rates of premium.

Are we doing business?

from vision to mission

7

Accelerate the economic momentum of the nation by bringing financial stability to rural India.

Innovate and develop rural-oriented and farmer friendly insurance products for all agriculture and allied risks.

Cast a protective net over agriculture and allied activities from natural perils and risks.

The ANNAPOORNA challenge

8

the business process challenge

9

The Crop Insurance business process is unlike any other in the insurance domain.

The “object of insurance” does not even exist at the time of taking coverage; hence its direct value (Sum Assured) also cannot be ascertained.

There is no named peril which will trigger a loss event. Claims have to be assessed backwards, as “lesser than expected yield”.

Therefore, coverage is individual BUT claims assessment is collective.

10

the many faces of the challenge

the scale of the challenge

Farmers scattered over 330 million hectares of land space across 638000 villages, mostly remote and poorly connected

199 million hectares of gross cultivable land

138 million farm holdings

118 millions small & marginal farmers (holding <2 hectares)

Annual average income of a farmer family is USD 1500

27 provincial Governments with individual jurisdiction participating in the crop insurance program

11

The ANNAPOORNA solution

12

13

FINANCE

ADMINPROCESS MGMT

BUSINESS INTEL

LEGAL

HRMSPORTALS

KNOWLEDGE MGMT

R & D

MARKETING

BUSINESS OPERATION

14

Product

Customer

Transaction

Legal

Yield

Vendor

Marketing

Weather

Employee

Financial

Admin Process

Presentation Tier

Application Tier

Data Tier

Portal

SMS Gateway

Call Center

Internal Stakeholder

External Stakeholder

system architecture

15

enterprise security framework

16

The ANNAPOORNA impact

17

the growth story : farmers insured

2003-04 2008-09 2013-1410

20

30

million farmers

18

2003-04 2008-09 2013-140

20

40

the growth story : area covered

million hectares

192003-04 2008-09 2013-140

0.5

1

the growth story : risk committed

billion Indian rupees

202003-04 2008-09 2013-14

0

10000

20000

30000

40000

the growth story : gross premium

million Indian rupees

212003-04 2008-09 2013-14

0

2

4

6

8

the growth story : farmers benefitted

million farmers

still flowing

in

22

learnings from ANNAPOORNA

23