Protecting farmers from floods: How parametric insurance builds climate resilience

This report aims to measure the impact of innovative parametric insurance on a pilot project in Nepal. Practical Action developed an innovative parametric insurance pilot in Nepal to provide financial protection to paddy rice farmers facing monsoon season flood hazards. Swiss Re Foundation partnered with 60 Decibels to evaluate the impact of the insurance product, and obtain learnings for planned expansio

Insights from the report state that Practical Action through local independent cooperatives are successfully providing insurance to farmers at risk of climate shocks, with 79% of farmers have experienced flooding in the past year. Despite the prevalence of flooding, 90% of farmers are accessing flood insurance for the first time and 98% say there are no alternatives in the market. However, there is room to improve the income inclusivity of flood insurance and reach more lower-income farmers.