Agriculture Weather Index Based Insurance (WIB)

Green Delta


The frequency and severity of hydro-meteorological events are on the rise in Bangladesh, and whilst government and donors have increasingly intervened in this area, long-term sustainable responses are also required. This can be achieved by the inclusion of the private sector.


Green Delta Insurance Company Limited (GDIC) initiated WIB insurance product for crops to mitigate the risks faced by input farms, agri-lenders and individual farmers arising from weather events. Green Delta will work with farmers via input retailers and contract farming aggregators. Index based weather insurance addresses many challenges associated with traditional crop insurance. Traditional crop insurance requires inspections at the farm level which makes it unsuitable for smallholder farmers in remote villages in rural areas. The cost of administration prevents insurance companies from serving the smallholder farmers even when they want to. Index-based insurance does not require farm inspections because data used for underwriting and loss adjustment is recorded in a prior agreed reference weather station. 


Through arranging Focus Group Discussions (FGDs), training sessions, awareness programmes for farmers, GDIC is reporting to actuaries and developing products based on the farmers’ needs. Premium payment and claim will be disbursed to the farmers through these distribution channels. The pilot will be implemented in Khulna, Shariatpur and Faridpur. The areas have been chosen based on strength of relationship between Green Delta Insurance and its implementing partners and specifically chosen due to the variability of weather patterns in these regions.


GDIC aims to cover around 9,800 farmers by September 2018.

Agriculture Weather Index Based Insurance (WIB)