Agriculture Scenario of Bangladesh
Agriculture is one of the major sectors of Bangladesh. The performance of this sector has an overwhelming impact on major macroeconomic objectives.
- In the FY 2017-18, the contribution of agriculture in our national GDP was 13.75% (Bangladesh Bureau of Statistics).
- 45% of the population of the country are directly dependent on agriculture.
Green Delta aims to serve this huge population through providing insurance to the farmers and work as a stabilizer in the financial condition of the farmers, the agri-lenders and the whole economy of Bangladesh.
Weather Index Based Agriculture Insurance
Green Delta Insurance Company Limited had its first footstep in the agriculture sector jointly with International Finance Corporation (IFC), in 2015. Weather Index Based Agriculture Insurance is to mitigate the risks faced by farmers during the cultivation process arising from adverse weather condition.
Weather Index Based Agriculture Insurance aims to mitigate risks arising from different climate changes and natural disasters, which are faced by farmers and agri-lenders.
The whole idea of Weather Index Based Agriculture Insurance is quite new to Bangladesh and incorporating such high-end modern technology in this sort of product to eradicate risks to provide a financial backup to the farmers is also a noble and dynamic idea. Green Delta Insurance Company Limited has given these ideas a practical platform while achieving success through several milestones.
How It Will Help:
GDIC developed and deployed insurance products to address weather-related risks faced by both lenders and farmers in Bangladesh. It will also strengthen technical and financial capability to administer the insurance products that will eventually help to remove the constraints of credit expansion to farmers with the vision to mitigate the weather related risk faced by agri-stakeholders and individual farmers arising from adverse natural calamities and climate change incidents like drought, excess rainfall, cold waves, cyclone signals, high or low temperature etc.
Main Features of Weather Index Based Agriculture Insurance
Our success is ensured for our special features, such as:
- Designing weather index insurance product to mitigate the risks like natural disasters for “any season, for any crop, in any area across Bangladesh”.
- Automation of claims settlement processes as a result farmers do not need to contact us for claims in case of any adversities and GDIC do not need to visit the field.
- Using Historical Data Grid support from 1981 to design product based on the parameters like; rainfall, temperature, relative humidity, wind-speed etc.
- Coverage area is monitored through 10 km radius based interpolated data station and unique web based software.
- Using GPS based technology to specify the location of farmers.
- Monitoring weather data on a regular basis which gives us the scope for faster settlement of claims.
- Automated loss assessment using parametric index solutions through a transparent process.
Weather Index Based Agriculture Insurance aims to serve the farmers, crop producing farms across Bangladesh. This insurance facility can be availed for a certain premium to insure them in case of financial risks and damages incurred to production of crops due to weather changes.
“Each client will be facilitated through customized or tailored products as per the weather index and historical weather data.”
Weather Index Based Agriculture Insurance Business Model
Process for Agriculture Insurance Policy
Weather Index Based Insurance coverage as of 1st half of December , 2020:
- Beneficiary: 63,763 Farmers (Policy)
- Around 301,043 Acres.
- Settled Claims to 15,122 farmers for Excess & Unseasonal Rainfall, Drought, Flood, Humidity, Sun Shine Hour, Heavy Rain due to Cyclone and Cold Spell on different seasonal crops
- Location Tapped: 18 Districts
Livestock Insurance coverage as of 1st half of December 2020:
- Direct Beneficiary: 231 Farms (Policy)
- Outreach: 527 Households (Awareness, Staff Training, Focused Group Discussions)
- Cattles Insured: 885 Cattle
- Sum Insured: BDT 126 Million +
- Claim Number: 18 cattle
- Location Tapped: 33 Districts
- GDIC wants to reach to the doorsteps of farmers bundling agriculture insurance through our business model with input farms, loan, micro-finance, seed bag, crop clinic, contact farming, fertilizer, irrigation contact, even with loyalty basis with any service etc.
- To address the country’s Food Security, we want to be the strength of farmers with Agriculture Insurance.
- Run Weather Index Based Agriculture Insurance in a mass level so that it can work as a stabilizer in the financial condition of the farmers, the agri-lenders and the whole economy of Bangladesh.