Weather index insurance: Lessons learned and best practices for Bangladesh

WorldFish and the International Centre for Climate Change and Development (ICCCAD) held a two-day workshop on the topic of Weather Index-Based Insurance: Lessons Learned and Best Practices for Bangladesh. Weather index insurance is based on a predefined weather event which when triggered ensures automatic payout to farmers who have taken out insurance. For example, the climatic trigger could be a predefined consecutive number of days where rainfall is below a set level or when the floodwater level reaches above a certain point. Index insurance has been operating for about 10 years in many countries but is still at an early stage in Bangladesh, where there are two schemes currently being piloted and three other projects being developed. The aim of the two-day workshop was twofold: to ascertain the present state of index insurance in Bangladesh and elsewhere, and to work together to identify ways forward.