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Bangladesh Microinsurance Market Development Project

The Phase I of BMMDP aims at improving farmers’ well-being, specifically smallholders, through enhanced agricultural productivity and resilience to natural disasters.

Smallholder farmers in Bangladesh are extremely vulnerable to weather related risks, the intensity of which increases because of climate change issues. Due to their limited savings and access to social protection and agriculture insurance, smallholder farmers often face catastrophic losses including damage to a season’s crop or livestock diseases. The overall insurance sector in Bangladesh is underdeveloped and the agriculture and disaster insurance mechanism is non-existent. Without access to insurance, smallholders’ only available strategy for reducing exposure to weather risks is to limit their investment in high-value inputs and diversifying into off-farm activities. Low investment in inputs and services means they cannot lose much in the event of a disaster. It also means that productivity and returns on their investment remain low. These “low investment - low returns” risk reduction strategies condemn smallholders to remain in poverty or lead a life perpetually on the brink.

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dinajpur, Bangladesh
25.6279123
88.63317579999999
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domar, bangladesh
26.1016094
88.8214984
Bangladesh
Project duration
2017 - 2021
Financed by
  • Swiss Agency for Development and Cooperation SDC

The project

BMMDP will focus on piloting and testing different insurance products and distribution channels to identify and develop appropriate weather index-based crop insurance products and risk mitigation methods for agriculture sector (initially, crop and livestock sub-sectors) in Bangladesh. By the end of phase 1, approximately 233,000 farmers will use crop insurance (and associated extension and financial literacy training) covering 55,920 hectares of land across 10 districts, an estimated 700,000 livestock keepers will have access to improved veterinary and animal husbandry services, and 500,000 farmers will use livestock insurance. In total, at least 733,000 smallholders are expected to have increased their resilience and well-being due to the sustainable risk-reducing and insurance services.
  • With better access to crop and livestock insurance, smallholder farmers will have more income through increased productivity deriving from the higher quality crop inputs and livestock while their risks will be partially reduced by improved crop and livestock production practices and insurance risk transfer solutions.
  • For both male and female farmers, additional income and greater access to risk reduction (e.g. veterinarian services) and transfer mechanisms (i.e. insurance) will contribute to increased resilience against natural disasters and encourage greater investment in costlier high-quality crop inputs and livestock.

Results

Results until June 2021

  • 529,679 of which 144,536  are women smallholder crop farmers have been reached through farmers literacy meetings, group leaders’ meetings and partner MFIs weekly installment collection meetings.
  • 83,522 farmers of which 14,139  unique  farmers (without double counting) were insured.
  • 391 entities are offering agriculture insurance products.
  • 13 appropriate crop insurance products developed by insurance companies till June 2021.
  • During the first 6 months of 2021, the payout has been declared for 10,241 farmers in 3 sub-districts with claim amount of BDT 661,766 for the boro rice pilot-3 season.
  • A claim settlement event held at hybrid platform (physical and digital) for the potato pilot-3 payout farmers of Syngenta Bangladesh at Thakurgaon Sadar. 578 farmers of Syngenta Bangladesh received payout of BDT 52,026 for potato pilot-3 product.
  • Contract signed with Sadharan Bima Corporation (SBC) which is the only state-owned general Insurance company in Bangladesh.
  • BRAC has started its operation under Crop Surokkha project.
  • Overall, 29,732 farmers farmers have access extension services.
  • Under component 2, PKSF (Pali Karma-Sahayak Foundation), implementing partner, has selected 15 Partner Organizations (POs) and their 325 branches based on their outreach and livestock credit portfolio. These POs will extend financial and non-financial services to the livestock farmers.
  • 126,702 of which 118,080 women, received livestock risk mitigation services from Partners Organizations (PO) and CHF 66,455,952 (BDT 6,246,859,500) volume of financing triggered due to BMMDP and its partners.

News

Bangladesh
Entrepreneurial ecosystems
08.09.2021
Press Release: Brac Bank and Green Delta Insurance Co with support from the Embassy of Switzerland through Swisscontact will be offering microinsurance backed loans to Livestock Sector Farmers of Bangladesh.
The microinsurance will provide coverage for both the asset (livestock) and Liability (outstanding loan amount) in case of death or permanent disability of the insured cattle.
Learn more

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