Home minister Amit Shah said the venture would build on IFFCO's existing joint venture with Tokio Marine to widen the cooperative sector's role in insurance.
The agreement addresses potential conflict-of-interest concerns while Prudential pursues its acquisition of a controlling stake in Bharti Life Insurance.
Researchers say insurers, reinsurers and governments must balance competing trade-offs around risk sharing, pricing and mitigation to sustain disaster coverage.
