Bangladesh Microinsurance Market Development Programme


This programme takes forward Switzerland’s global and in-country experience in working on agricultural microinsurance by addressing critical climate risks, hazards and resulting economic shocks for farming people. The programme will sustainably increase resilience of farmers and related micro and small enterprises through climate change adaptation practices, and stimulate sustainable and inclusive growth across multiple agricultural sub-sectors.

Land/Region Thema Periode Budget
Bangladesch
Landwirtschaft und Ernährungssicherheit
Beschäftigung & Wirtschaftsentwicklung
Klimawandel & Umwelt

Finanzdienstleistungen im Landwirtschaftssektor
Informal banking & insurance
Finanzsektorpolitik
Reduktion von Katastrophenrisiken DRR
Gewerbeunterstützung & Wirtschaftszugang
01.07.2023 - 31.12.2027
CHF  9’700’000
Hintergrund Bangladesh’s economy relies heavily on the agriculture sector. The agriculture sector contributes to 13.5% of GDP, and over 87% rural people derive at least some income from this sector. Therefore, agriculture has an overwhelming impact on major national objectives such as poverty alleviation, employment generation, and food security. At the same time, Bangladesh is the seventh most climate change vulnerable country in the world and ranks fifth in terms of economic losses due to climate change. The country is already facing enormous economic losses in the agriculture sector due to an increasing frequency of extreme weather events, such as floods, cyclones and hail storms. To ensure a long-term income generation, equal growth and food security, the agriculture sector needs to be more resilient to the impact of climate change. Microinsurance is an effective instrument to increase this resilience. In Bangladesh, demandbased microinsurance products can address specific needs of the vulnerable and low-income farming population while a conducive regulatory environment can additionally promote a vibrant microinsurance market.
Ziele The overall goal is to increase resilience of farmers and related micro, small, medium size enterprises in the crop, livestock and fishery sectors against climatic hazards through promoting microinsurance in a sustainable manner. Through the programme, at least 200’000 farmers and enterprises will use climate-sensitive microinsurance services, increase income and have better resilience against climate change-related losses, thus improving their productivity and contribution to food security, and an inclusive economic growth of Bangladesh.
Zielgruppen

Direct Beneficiaries:

The target group is at least 200’000 smallholder farmers, particularly women, and the poor vulnerable as ultimate beneficiaries from climateresilient microinsurance products and services.

Indirect Beneficiaries:

Different distribution networks will be explored (national agro-companies, Microfinancing Institutions) in partnerships with public and private insurance companies. The managing agent (Swisscontact) will be mandated to subcontract research institutes, private technology companies, who have a strong outreach to poor, female farmers and SMEs.

Mittelfristige Wirkungen

Outcome 1)    A more conducive, climate sensitive microinsurance policy environment is facilitated.

Outcome 2) Climate-resilient, client-focused and viable microinsurance products and services are incubated and rolled out.

Outcome 3)    More demand for climate-resilient microinsurance products and services from smallholder farmers and enterprises is created through mass awareness campaigns.

Resultate

Erwartete Resultate:  

Output 1)    At least three microinsurancerelevant policies developed and approved for implementation.

Output 2)    At least ten new climate-sensitive microinsurance products in crop, livestock and fisheries will be developed and ten private and public support service actors’ capacity will be improved.

Output 3)    At least 1.2 million people in the farming sector will be sensitised to climateresilient microinsurance through specific campaigns.


Resultate von früheren Phasen:  

-    At least 310’400 farmers (women: 145,892; poor: 105,595) benefitted from increased resilience through increased income in crop and livestock microinsurance pilots.

-    A minimum of 274,000 of livestock were covered under microinsurance service.

-     The crop microinsurance component piloted 7 microinsurance products in Rice, Potato, Maize, Beans and Tomato in partnership with two commercial insurance companies (private and public) using 6 distribution channels.

-    Total amount of sum insured was CHF106’836’054, and total 101’489 farmers received an insurance payout (CHF693’085). 

-    At least 340’160 farmers (crop and livestock) adopted climate-friendly improved farm management practices.

-    An external Market Scoping Analysis was conducted, findings were validated through a national workshop with Government.

-    A digitized, low-cost cattle identification software (app) was developed for the first time, and received the Innovation Award 2023 by the Government of Bangladesh.


Verantwortliche Direktion/Bundesamt DEZA
Projektpartner Vertragspartner
Schweizerische Non-Profit-Organisation
  • Andere Schweizer Non-Profit Organisation
  • Swisscontact


Andere Partner
Swisscontact
Koordination mit anderen Projekten und Akteuren

The programme has opportunities to complement other Swiss-supported programmes in Bangladesh, for instance, Market for Chars (M4C) and Prabriddhi.

The German Embassy, WFP, UNDP and the Embassy of Sweden are in the process of planning new microinsurance initiatives. Potential synergies will be explored.

Budget Laufende Phase Schweizer Beitrag CHF    9’700’000 Bereits ausgegebenes Schweizer Budget CHF    750’000
Projektphasen Phase 2 01.07.2023 - 31.12.2027   (Laufende Phase) Phase 1 15.05.2016 - 30.06.2023   (Completed)