Acknowledgements iii
Executive Summary iv
Context iv
Challenges for the Development of Agricultural Insurance in Bangladesh v
Options for Consideration viii
Next Steps xi
Chapter 1: Introduction 12
Importance of Agriculture in Bangladesh 12
Government Policy for Agriculture and Climate Change 12
Role of Rural Institutions and Farmer Access to Financial and Other Support Services 14
Exposure of Agriculture to Natural and Climatic Disasters 16
Objectives of the Study and Selection of Three Study Districts 18
Chapter 2: Review of Farmers’ Financial Protection against Natural Disasters in Bangladesh 20
Disaster Relief Programs 20
Bangladesh Insurance Sector 23
Supply of Agricultural Insurance in Bangladesh 27
Demand for Agricultural Insurance in Bangladesh 36
Chapter 3: Agricultural Risk Assessment in Bangladesh 39
Objectives and Scope of Agricultural Crop, Livestock, and Weather Risk Assessment 39
Data Availability for Crop, Livestock, and Weather Risk Assessment 39
Agricultural Crop Production in Bangladesh 40
Key Climatic Perils and Crop-Area Damage Assessment 48
Regional-Level Risk Assessment of Crop Production and Yields 51
Weather-Risk Assessment and Impact on Crop Production and Yields 60
Livestock-Risk Assessment 69
Chapter 4: Opportunities for Agricultural Insurance Product Development in Bangladesh 75
Potential Crop Insurance Policy Options for Bangladesh 75
Named-Peril Crop Insurance (Hail, Frost, Wind) 77
Multiple-peril Crop Insurance (MPCI) 81
Area-Yield Index Crop Insurance 82
Livestock Insurance 99
Chapter 5: Operational Issues for Agricultural Insurance 107
Traditional Named-Peril Crop Insurance and Area-Yield Index Insurance 107
Crop-Weather Index Insurance 111
Livestock Insurance 114
Chapter 6: Institutional and Financial Considerations 116
Public-Private Partnerships in Agricultural Insurance: International Experience 116
Public-Private Partnership Options for Agricultural Insurance in Bangladesh 120
Risk Financing and Reinsurance Considerations 129
Glossary 132
Bibliography 141