Bangladesh Microinsurance Market Development Programme

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.

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.

Expected results:  

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.

Results from previous phases:  

-    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.

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.