Bangladesh: Government urged to support crop insurance
Source: Asia Insurance Review | Jul 2019
Crop insurance would take off in Bangladesh if the government was to lend support, and awareness among farmers was raised, experts have said.
Costly weather data and people’s lack of trust in insurers are also holding back crop insurance from reaching its potential, reported Daily Star citing industry players.
“Crop insurance is very important for the growth of the agricultural sector as natural disasters are very common in Bangladesh and they impact farmers,” said Green Delta Insurance CEO Farzana Chowdhury.
Her comments were made at a recent roundtable organised jointly by Green Delta Insurance and the Business Finance for the Poor in Bangladesh, a programme of the UK’s Department for International Development to promote micro and small enterprises.
Ms Chowdhury added that crop insurance is costly in Bangladesh as weather data are not available and the data have to be collected from international sources.
In addition, she said that there is little confidence among farmers in insurers, a situation which represents a very big hurdle to spreading crop insurance.
Insurance Development and Regulatory Authority member Gokul Chand Das said the experience of crop insurers in Bangladesh has not been good. He gave an example where an insurer had to pay more in claims related to crop insurance that were higher than the premiums collected.
“We have to develop a fair policy or model at first in order to ensure a win-win situation,” he said. A