Tree Insurance: A Sustainable Financial Safety Net for Green Assets – A Review

Abstract

Tree insurance is an emerging risk management tool that provides financial protection to tree and plantation growers against economic losses arising from natural disasters such as floods, cyclones, and droughts. This review highlights the significance of tree insurance in promoting environmental protection, biodiversity conservation, and sustainable development. The paper discusses six types of insurance policies offered primarily by private companies, with 35% participation from the General Insurance Corporation of India. Various commercially important species like Casuarina, Eucalyptus, Dalbergia, Poplar, Rubber, and Coconut are covered under different policies based on premium rates and risk factors such as species, age, location, and policy type. Tree insurance, usually valid for one year, offers both direct benefits—such as economic stability and employment generation—and indirect benefits like climate change mitigation and social security. The review also suggests policy improvements, including flexible payment structures, wider species and geographical coverage, increased government support, and enhanced public awareness to make tree insurance more accessible and effective.