Bangladesh : Agriculture Insurance Situation Analysis
Agriculture is key in Bangladesh but highly exposed to risks.The Government provides significant support to agriculture, but currently provides limited support to the development of agriculture insurance.While the Government and external donors spe...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/283721544525997951/Bangladesh-Agriculture-Insurance-Situation-Analysis http://hdl.handle.net/10986/31046 |
| Summary: | Agriculture is key in Bangladesh but
highly exposed to risks.The Government provides significant
support to agriculture, but currently provides limited
support to the development of agriculture insurance.While
the Government and external donors spend large amounts of
money in the aftermath of disasters – average annual costs
of disasters are USD 300 million - the funding gap is still
high and can reach more than USD 1.5 billion in bad years.In
spite of Government’s efforts, credit to agriculture is
still constrained and represents 3 percent of total
lending.If agriculture insurance programs were to be
developed in Bangladesh, the overall legal, regulatory and
supervisory insurance environment would require
strengthening.Based on this preliminary assessment and
discussions with key stakeholders, the WBG will prepare a
technical report and policy briefing for Bangladesh Ministry
of Finance’s Bank and Financial Institutions Division (BFID)
on four potential types of agricultural insurance programs
which have been identified through this situational analysis
as priority solutions for further investigation. The four
priority areas identified for further investigation are: (1)
Livestock insurance for commercial dairy farmers and poultry
farmers; (2) Insurance cover for shrimp producers and
artisanal fishermen; (3) Crop insurance linked to credit for
small and marginal cereal farmers; and (4) Fully subsidized
flood-index insurance for the most vulnerable rural
households. The diagnostic reports will also analyze
potential institutional frameworks that could be considered
for agricultural insurance in Bangladesh, paying specific
attention to the potential roles for the Government and insurers. |
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