Weather Index Insurance for Agriculture in Bangladesh: Significance of Implementation and Some Challenges

Abstract

Farmers are very poor and vulnerable especially in the developing countries. Farmers face several natural disasters and challenges during the agricultural production. The unavoidable and negative impact of weather could reduce the capacity of production, make farmers unproductive and put farmers into poverty. To face these challenges, weather index insurance could play a significant role but implementing index-based insurance is also challenging. Different stakeholders from insurance companies to government to donor agencies should come forward to protect the agricultural production because agriculture is the main source of food. These stakeholders also need to protect the lives of farmers, and enhance economic growth by implementing weather index insurance. This paper will focus on the present literatures of weather index insurance mainly some basic issues of weather index insurance and the relevance to use this in the context of Bangladesh, the advantages of weather index insurance and the challenges of implementation.

Keywords: Weather Index Insurance, Bangladesh, Agriculture, Insurance

DOI: 10.7176/EJBM/5-14-74