Business Report :
Climate risk insurance (CRI) is becoming increasingly vital for Bangladesh, one of the world’s most climate-vulnerable countries, but structural, technical, and policy challenges have hindered its widespread adoption, officials said at a workshop on Monday.
Speaking at the workshop on Enhancing Media Capacity on Climate Risk Insurance, held at the Economic Reporters’ Forum (ERF) auditorium, Insurance Development and Regulatory Authority (IDRA) Chairman Dr M Aslam Alam highlighted the immediate impacts of climate change.
“It is no longer a future threat. It is already affecting our lives, food security, and health,” he said, citing rising temperatures, shrinking winters, and intensifying floods and cyclones.
Dr Alam noted that CRI could protect vulnerable communities if barriers such as insurability, affordability, and moral hazard are addressed.
He suggested parametric or weather-index insurance, which triggers payouts based on predefined parameters like river water levels or cyclone wind speeds, as a potential solution.
However, he stressed that legal recognition, nationwide data infrastructure, and inter-agency coordination remain crucial for scaling up CRI.
Bangladesh Bank Executive Director Hosne Ara Shikha emphasised integrating insurance with green finance and credit schemes, noting that 20 percent of bankable funds have been directed toward green initiatives with special focus on women entrepreneurs.
Speakers including WFP’s Nurul Amin and Oxfam’s Dr Mohammad Emran Hasan underlined the importance of fast, reliable CRI mechanisms for climate-vulnerable families. Dr Hasan stressed, “Bangladeshis living in climate hotspots did not create the climate crisis but they pay the highest price. Media can drive that transformation.”
ERF President Doulot Akter Mala and General Secretary Abul Kashem also addressed participants at the event, which was jointly organised by ERF and Oxfam.
