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BMMDP Partners Up to Drive Innovations in Agri-Insurance in Bangladesh 

Bangladesh
Sustainable agriculture
24.11.2024
Bangladesh Microinsurance Market Development Programme (BMMDP) onboards five new partners to fuel innovative solutions for boosting farmers’ climate-risk resilience and financial security. 

The Bangladesh Microinsurance Market Development Programme (BMMDP), funded by the Embassy of Switzerland in Bangladesh, has signed five, strategic partnership agreements to further its mission of bolstering resilience and financial security for farmers in Bangladesh.  

Initiated by the Swiss Agency for Development and Cooperation (SDC) in 2017, BMMDP addresses the climate risk management challenges faced by smallholder farmers, particularly in the agriculture sector. The programme proved the commercial viability of microinsurance and identified pathways to scale. Building on this foundation, BMMDP now employs a comprehensive sector development approach, involving policy enhancements, product diversification, and increased awareness. 

The newly signed partnerships aim to leverage technology, expertise, and inclusive strategies to test out new concepts, technologies and linkages to microinsurance for farmers. The five new partnerships include: 

“Rapid Feasibility Study & Product Development for Innovative Livestock Insurance”. BMMDP’s partnership with PULA Advisors AG will oversee a rapid feasibility study on index-based livestock microinsurance. Unlike traditional indemnity-based insurance, this approach uses predefined indices, such as rainfall levels or drought conditions, to determine payouts. Index-based designs could yield cost-effective and scalable solutions for livestock farmers and micro, small, and medium enterprises (MSMEs) facing climate hazards. The study will guide the development of market-aligned products for robust protection. 

“Empowering Farmers through Insurance Awareness and Access to Finance”. In partnership with WeGro Technologies Ltd., BMMDP aims to tackle one of the major barriers to the adoption of microinsurance: low awareness. The project focuses on educating farmers about the benefits of insurance through targeted awareness campaigns and capacity-building initiatives. By empowering farmers with knowledge, this effort will not only encourage uptake of insurance solutions but also position microinsurance as an integral part of financial planning. 

“Parametric Heat Index Insurance for Bangladeshi Dairy Farmers”. In collaboration with Blue Marble Microinsurance Inc., Reliance Insurance, and BRAC Dairy & Food Project, BMMDP is developing parametric heat index-based solutions for dairy farmers. The final product will compensate farmers for losses resulting from extreme heat, which adversely impacts milk production and cattle health. Thus, the solution will ensure financial stability for farmers during heatwaves, boosting resilience and productivity. 

“Bancassurance for Cattle Health and Wellness”. Leveraging insights from its pilot phase, BMMDP has partnered with InsureCow Ltd. to introduce an enhanced bancassurance model for cattle health and wellness insurance. This model utilises extensive banking networks for last-mile delivery, thereby reducing operational costs. It also integrates advanced cattle identification technology and bundles support services for cattle rearing – representing a comprehensive value proposition for farmers. 

“Veterinary-Led Cattle Insurance”. BMMDP is working with Carnival Assure, an insurtech firm, to launch a veterinary-led cattle insurance product. This initiative combines mortality coverage with preventive care through regular health assessments and vaccinations conducted by trained veterinary professionals. By focusing on disease prevention and improved livestock health, it will reduce risks and enhance productivity for cattle farmers. 

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Together, these projects showcase BMMDP’s commitment to fostering innovative, inclusive, and sustainable solutions in the microinsurance sector. By addressing the diverse challenges faced by farmers, these partnerships aim to drive resilience, boost productivity, and contribute to the broader goals of financial inclusion, food security, and economic growth in Bangladesh. 

Partnerships at a glance

2017 - 2027
Bangladesh
Entrepreneurial ecosystems, Sustainable agriculture
Bangladesh Microinsurance Market Development Project (BMMDP) (Surokkha)
The project supports Farming Enterprises (Micro and Small) to improve resilience through using climate-sensitive microinsurance products and services, contributing to food security and inclusive economic growth of Bangladesh.
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