Bangladesh: IFC to partner Green Delta for Crop insurance project
Source: Asia Insurance Review | Apr 2015
IFC, a member of the World Bank Group, has signed an agreement with Bangladesh’s leading private insurer Green Delta Insurance Co Ltd to develop a crop insurance mechanism to protect the rural economy.
Agriculture contributes about 20 % of Bangladesh’s GDP and employs close to half the country’s labour force. Frequent natural disasters, however, cause serious damage to crops and livestock each year. Lenders are unwilling to extend credit to this sector which is exposed to natural disasters, without risk-mitigating measures.
As per the agreement, IFC will assist Green Delta to develop mechanisms that minimise the impact of crop losses due to natural disasters. The project is partly funded by IFC’s Global Index Insurance Facility, a multi-donor trust fund supporting development and growth of local markets for weather and disaster index insurance.