Swiss Re helps launch Bangladesh flood index

Swiss Re has helped structure an innovative flood index insurance product that will cover almost 2,000 poor families living in the Char areas of the Sirajganj district of Bangladesh.

The product aims to provide cash relief of up to Tk8,000 ($100) per household in event of catastrophic flood.

Initiated by Oxfam, the project is funded by the Swiss Agency for Development and Corporation and jointly implemented by CIRM Advisory Services (India), the Institute of Water Modeling (Bangladesh), Pragati Insurance, Swiss Re, Manab Mukti Sangstha (Bangladesh) and Palli Karma Sahayak Foundation (Bangladesh).

Abul Hassan Mahmood Ali, MP, the Minister of Disaster Management and Relief, said at a launch ceremony: “With this very innovative initiative, poor and vulnerable people of Sirajganj district, who are the regular victims of flood, will feel more secure. He said that a similar initiative could eventually cover the whole of Bangladesh.

Snehal Soneji, country director for Oxfam in Bangladesh, said. “Bangladesh is a flood prone country, which is one of the primary reasons for wide spread poverty, despite the remarkable economic progresses government has made. Index based flood insurance is aimed to design a commercially viable catastrophic flood insurance scheme for the poor and vulnerable.

“We are now piloting it in Sirajganj, with a hope to spread it across the country with the support from government, national and international organizsations.”