Government moves to cover crops under climate risk insurance to protect farmers

Draft law amendments will also pave the way for parametric, weather-based insurance in Bangladesh for the first time

The interim government has moved to bring farmers’ crops under insurance coverage to tackle growing climate risks in Bangladesh, according to the Insurance Development Regulatory Authority (IDRA).

A draft law is ready and work has started on the “Climate Risk Insurance” guidelines, IDRA chairman M Aslam Alam said at a workshop at Economic Reporters Forum (ERF) office in Dhaka’s Paltan on Monday.

Each year, people lose homes and livelihoods due to climate change, making robust social protection and a sustainable insurance system “essential”, he added.

He explained that conventional insurance depends on actual losses, whereas climate-related risks involve future uncertainties. Parametric or weather-based insurance is necessary for this, but it currently has no legal recognition in Bangladesh.

According to him, the proposed guideline would provide official recognition.