Crop Insurance as Risk Management Strategy in Bangladesh

Abstract

AbstractIn recent years, natural disasters, particularly climate-related disasters have increased both in terms of frequency and magnitude. As a consequence of climatic disasters, agriculture and agricultural dependent livelihood of Bangladesh is facing its substantial impacts. Structural measures for disaster risk management are often found less effective. In this regard, non-structural measures such as crop insurance is suggested as a risk management strategy. All over the world, especially USA, Canada, Australia, Japan and India, practices crop insurance through Multiple Peril Crop Insurance (MPCI), weather index-based crop insurance etc. To some extent, crop insurance has to be found successful or failure. In Bangladesh case, it has been seen that crop insurance has been introduced in 1977 in corporation with the Sadharan Bima Corporation (SBC) as a pilot project. But, due to lack of policy support and partnership, expertise and monitoring and methodological problem, this project did not sustain. Therefore, this chapter briefly discusses the types and products of crop insurance, the worldwide experiences of crop insurance and which types of crop insurance is important in context of Bangladesh. This chapter also gives emphasis on the implementation of crop insurance because of improving the welfare of risk averse farmers, particularly small and marginal farmers. In conclusion, this chapter recommends the integration of a solid partnership among relevant stakeholders at local, national and international level.KeywordsAgricultural livelihoodsClimatic disasterCrop insurancePartnershipSadharan Bima Corporation