Climate Action That Pays: Innovative Insurance Securing Livelihoods in Bangladesh

Kurigram is a northern district of Bangladesh and a severely climate-vulnerable area. Floods, river erosion, droughts, and lightning are common phenomena here.  The district experiences devastating floods – sometimes as many as five times in a single year. It washes out agricultural lands and damages crops, houses, and livestock – leaving a devastating aftermath on the communities.

The Local Government Initiative on Climate Change (LoGIC) project, a collaboration between the Government of Bangladesh, UNDP, UNCDF, Sweden, and Denmark, has introduced a financial shield here, known as "crop insurance."

©UNDP Bangladesh

"I did not know that agricultural crops could be insured. I heard about this service for the first time from LoGIC Project", says Meghna Khatun, cashier of Jugnidah Jalabayu O Jibika Unnayan Shomobay Shomity Ltd of Kurigram in Bangladesh.

It provides timely financial payouts to marginalised farmers and casual labourers after a disaster, helping them recover from lost wages and damaged crops. It prevents them from falling into the vicious cycle of poverty. 

"Crop insurance felt like a distant concept, and the local communities were not familiar with it. However, climate change made it essential," said Meghna. 

LoGIC Project and Green Delta Insurance Company (GDIC) signed an MoU and brought this sophisticated financial tool to grassroots cooperatives. Their initial focus was on maize and sheep cultivation.

Around 2508 beneficiaries received BDT 4,76,661 (USD 3900) for maize cultivation losses caused by unfavourable weather. The money was not spent on any immediate consumption; it was reinvested in other Climate-Adaptive Livelihood Options (CALOs). 

This shows a transition from short-term relief to long-term economic strategy. 

The initiative has fostered a culture of risk management and financial planning, enabling families to maintain their daily lives without disrupting their regular livelihoods. The beneficiaries are motivated to reinvest and are now encouraging non-participants to join the system. 

Meghna Khatun's group invested BDT 18,238 (approximately USD 150) in maize cultivation and received a coverage of BDT 46,906 (approximately USD 383) for that. They have decided to continue covering any "green initiative" by insurance in the future, signifying success, ownership, and sustainability.

Crop insurance, through the LoGIC Project, isn't just about recovering losses; it's about giving vulnerable communities the financial stability and confidence to innovate, reinvest, and secure their own future against a changing climate.

For the first time, farmers in Kurigram can insure their crops—and their confidence.