Faced with the escalating threat of more frequent and destructive flooding, vulnerable farmers and governments are increasingly recognizing the potential of flood insurance products. In India, for instance, a national crop insurance scheme (Pradhan Mantri Fasal Bima Yojana) was launched in February 2016 with the aim of reaching 61.2 million vulnerable farmers by 2019\u20132020. But this, and other similar schemes, have encountered several challenges: the data they rely upon is limited; they often fail to reach the poorest farmers \u2013 particularly women, youth or farmers from other disadvantaged groups; and payouts tend to be delayed because of inefficiencies and difficulties verifying losses. <\/p>\n\n\n\n
A close examination of these deficiencies and experience gained through several WLE-supported projects in Bangladesh<\/a>, India<\/a> and Sri Lanka<\/a> has helped inform the development of innovative pro-poor insurance products. One is an index-based flood insurance scheme<\/a> that uses flood modelling data to estimate flood depths and duration and satellite data to help assess flood damage. The approach removes the need to verify claims via field visits, speeds up the delivery of compensation from insurers and helps ensure that premiums remain affordable. Compensation is triggered automatically when floods reach a certain threshold; the exact amount determined by the duration and depth of a flood. <\/p>\n\n\n\n