Bangladesh Microinsurance Market Development Programme

This programme takes forward Switzerland’s global and in-country experience in working on agricultural microinsurance by addressing critical climate risks, hazards and resulting economic shocks for farming people. The programme will sustainably increase resilience of farmers and related micro and small enterprises through climate change adaptation practices, and stimulate sustainable and inclusive growth across multiple agricultural sub-sectors.

Paese/Regione Tema Periodo Budget
Agricoltura e sicurezza alimentare
Impiego & sviluppo economico
Canbiamento climatico ed ambiente
Servizi finanziari agricoli
Informal banking & insurance
Financial policy
Riduzione dei rischi di catastrofi
Supporto commerciale & inclusione economica
01.07.2023 - 31.12.2027
CHF  9’700’000
Contesto Bangladesh’s economy relies heavily on the agriculture sector. The agriculture sector contributes to 13.5% of GDP, and over 87% rural people derive at least some income from this sector. Therefore, agriculture has an overwhelming impact on major national objectives such as poverty alleviation, employment generation, and food security. At the same time, Bangladesh is the seventh most climate change vulnerable country in the world and ranks fifth in terms of economic losses due to climate change. The country is already facing enormous economic losses in the agriculture sector due to an increasing frequency of extreme weather events, such as floods, cyclones and hail storms. To ensure a long-term income generation, equal growth and food security, the agriculture sector needs to be more resilient to the impact of climate change. Microinsurance is an effective instrument to increase this resilience. In Bangladesh, demandbased microinsurance products can address specific needs of the vulnerable and low-income farming population while a conducive regulatory environment can additionally promote a vibrant microinsurance market.
Obiettivi The overall goal is to increase resilience of farmers and related micro, small, medium size enterprises in the crop, livestock and fishery sectors against climatic hazards through promoting microinsurance in a sustainable manner. Through the programme, at least 200’000 farmers and enterprises will use climate-sensitive microinsurance services, increase income and have better resilience against climate change-related losses, thus improving their productivity and contribution to food security, and an inclusive economic growth of Bangladesh.
Gruppi target

Direct Beneficiaries:

The target group is at least 200’000 smallholder farmers, particularly women, and the poor vulnerable as ultimate beneficiaries from climateresilient microinsurance products and services.

Indirect Beneficiaries:

Different distribution networks will be explored (national agro-companies, Microfinancing Institutions) in partnerships with public and private insurance companies. The managing agent (Swisscontact) will be mandated to subcontract research institutes, private technology companies, who have a strong outreach to poor, female farmers and SMEs.

Effetti a medio termine

Outcome 1)    A more conducive, climate sensitive microinsurance policy environment is facilitated.

Outcome 2) Climate-resilient, client-focused and viable microinsurance products and services are incubated and rolled out.

Outcome 3)    More demand for climate-resilient microinsurance products and services from smallholder farmers and enterprises is created through mass awareness campaigns.


Risultati principali attesi:  

Output 1)    At least three microinsurancerelevant policies developed and approved for implementation.

Output 2)    At least ten new climate-sensitive microinsurance products in crop, livestock and fisheries will be developed and ten private and public support service actors’ capacity will be improved.

Output 3)    At least 1.2 million people in the farming sector will be sensitised to climateresilient microinsurance through specific campaigns.

Risultati fasi precedenti:  

-    At least 310’400 farmers (women: 145,892; poor: 105,595) benefitted from increased resilience through increased income in crop and livestock microinsurance pilots.

-    A minimum of 274,000 of livestock were covered under microinsurance service.

-     The crop microinsurance component piloted 7 microinsurance products in Rice, Potato, Maize, Beans and Tomato in partnership with two commercial insurance companies (private and public) using 6 distribution channels.

-    Total amount of sum insured was CHF106’836’054, and total 101’489 farmers received an insurance payout (CHF693’085). 

-    At least 340’160 farmers (crop and livestock) adopted climate-friendly improved farm management practices.

-    An external Market Scoping Analysis was conducted, findings were validated through a national workshop with Government.

-    A digitized, low-cost cattle identification software (app) was developed for the first time, and received the Innovation Award 2023 by the Government of Bangladesh.

Direzione/Ufficio responsabile DSC
Partner del progetto Partner contrattuale
Organizzazione svizzera senza scopo di lucro
  • Altra organizzazione svizzera non profit
  • Swisscontact

Altri partner
Coordinamento con altri progetti e attori

The programme has opportunities to complement other Swiss-supported programmes in Bangladesh, for instance, Market for Chars (M4C) and Prabriddhi.

The German Embassy, WFP, UNDP and the Embassy of Sweden are in the process of planning new microinsurance initiatives. Potential synergies will be explored.

Budget Fase in corso Budget Svizzera CHF    9’700’000 Budget svizzero attualmente già speso CHF    750’000
Fasi del progetto Fase 2 01.07.2023 - 31.12.2027   (Fase in corso) Fase 1 15.05.2016 - 30.06.2023   (Completed)