Index Insurance Forum

South Asia

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In 2015, IFC, supported by GIIF, launched the Weather Index Insurance project with Green Delta Insurance Company (GDIC), to develop insurance products to address perils such as drought, excess rain, heat waves, and cold spells in Bangladesh. In October 2015, during the initial days of the project, GDIC and IFC approached Supreme Seed Company for index insurance partnership for their contract farming farmers. A case study was developed to capture the activity.
The development of sustainable insurance solutions requires a thorough risk assessment, modeling and layering. Agricultural and climate risks are mainly of a systemic nature, i.e. they affect a large geographic area or large parts of the population simultaneously. If the insured risk is not adequately spread, one catastrophic event can threaten the viability of the whole scheme. To lower covariate risks, the portfolio thus needs to be diversified in terms of crops, type of risks, and different geographical regions.
The core objective of the project is to provide farmers with a variant of seeds for contract farming that helps farmers have access to market but also in the technological application, farm credit and insurance for their crops.
The core objective of the project is to minimize Sri Lankan farmers’ risk of an income loss due to unfavorable weather conditions.
The core objective of the project is to develop various mutual crop insurance products small-scale farmers who do not have access to insurance mechanisms for adapting to climate change-related issues.
Green Delta Insurance, a GIIF's partner, recently settled a claim of 1,000 farmers in Chitalmari, Begarhaat, Bangladesh. The 1,000 tomato farmers were insured by Green Delta's Weather Index-based Agri Insurance, the first of its kinds in the country. Bangladesh's State Minister for Finance, Chairman of Insurance Development and Regulatory Authority Bangladesh, and CEO of Green Delta Insurance Company, Farzana Chowdhury, attended the event.

Index Insurance Helps Farmers in Bangladesh Build Resilience Against Climate Risks

Supported by the Global Index Insurance Facility (GIIF), the International Finance Corporation (IFC) works with Green Delta Insurance to design and retail weather index insurance products that protect smallholder farmers and agribusinesses from climate risks. Access to finance provides a means for the farmers to sustain income and food security.
In a study, a research economist at the Institute of Policy Studies finds that index insurance could be a feasible option for Sri Lankan farmers if they had greater education and awareness that overcomes existing lack of trust, EconomyNext reports . It is not uncommon that fa rmers have become skeptical about insurance after they heard about other bad experiences other farmers had with indemnity insurance. The lack of trust, as the farmers are unsure whether they will get benefits when disaster strikes, hinders the development and wider implementation of index insurance.
In November 2016, the World Bank Group’s Global Index Insurance Facility (GIIF), in collaboration with the International Labor Organization and Munich Re Foundation, organized a conference workshop entitled “Building Sustainable Agriculture Programs” in Colombo, Sri Lanka. Delivered as part of the 12th Annual Micro Insurance Conference, the daylong technical workshop brought together more than 50 participants from the public and private sector, donors, and development partners. Amena Arif, IFC country manager for Sri Lanka and the Maldives, and Rolande Simone Pryce, advisor from the World...
Munich Re Foundation and Microinsurance Network have released a report on t he Landscape of Microinsurance in The landscape of microinsurance in Sri Lanka . " Microinsurance in Sri Lanka initially started as a service to support the microfinance sector, focusing on providing loan protection, insurance and life savings. The insurance business extended their services to provide welfare and health products to low-income people. With almost 24% of the population living on less than USD 2 a day (World Bank Statistics, 2015), it was found that health is the largest risk faced by poor households,...