Dhaka, Bangladesh, February 24, 2015
– IFC, a member of the World Bank Group, has signed an agreement
with Bangladesh’s leading private insurer Green Delta Insurance to develop
insurance products for individual farmers, agribusinesses, and financial
institutions lending to farmers for protection from weather-related risks
such as drought, excess rain, and cyclones.
IFC will assist Green Delta, an IFC equity client, to develop insurance
products that minimize the impact of crop losses due to natural disasters,
provide advisory support for distributing and administering these products,
increasing lending and business to farmers and improving their risk profile.
“As a leading insurance institution in the country we believe crop insurance
protects rural economy,” said Farzana Chowdhury, Managing Director of
Green Delta. “Weather-index insurance will help regulate farmers’ income
and infuse reliability to this uncertain sector,” she added.
Agriculture contributes 20 percent of GDP and employs close to half the
labor force. However, the country is vulnerable to frequent natural disasters
that cause serious damage to crops and livestock each year. Consequently,
lenders are unwilling to extend credit to a sector exposed to natural disasters
without risk-mitigating measures.
“Through index-based insurance, IFC will help provide a safety net to
agribusiness and offer a range of financial services to farmers aimed at
securing their livelihoods,” said Kyle F Kelhofer, IFC Country Manager
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. It focuses on developing countries,
primarily in Asia, Sub-Saharan Africa, Latin America and the Caribbean.
Donors include the Netherlands, European Union, and Japan.
The government-supported Pilot Program for Climate Resilience project for
Bangladesh also provides funds for this project. It aims to increase revenues
of farmers and agribusinesses through sustainable and climate-smart technologies
GIIF has insured over 800,000 small farmers and businesses, with an insurance
value of $121 million, and reaching over one million with information and
access to index insurance. GIIF’s objective is to expand the use of index
insurance as a risk management tool in agriculture, food security and disaster
mitigation, particularly in communities where insurance is rarely available.
About Green Delta
Green Delta is one of the leading private non-life insurance companies
in Bangladesh, incorporated in 1985 as a public limited company. Green
Delta products are designed to cater to different market segments, including
Small & Medium Enterprises (SMEs), other Commercial Enterprises, and
personal insurance for individuals. For more information, visit www.green-delta.com
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in about 100 countries, IFC uses its capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, IFC provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org.