Project Title: Testing the feasibility of Index-Based Agriculture Insurance Against Water-Induced Disasters in Nepal
Collaborating Partner: USAID/Tayar Nepal
Duration: February 2021- December 2021
Area Coverage: Bhajani Municipality, Kailali
Key Project Staff: Mr. Dhanej Thapa , Team Leader/Agriculture, and DRF Expert; Dr. Lal Prasad Amgain, Agronomist/Crop Modeller; Dibesh Shrestha, Flood/Drought Modeler; Anita Khadka, GIS/Remote Sensing Expert; Niraj Poudyal, Economist/Econometrics; Sovita Parlyar, Gender Expert; Nabin Shrestha, MEL Officer; Hem Raj Upreti, Public Relationship & Coordination Coordinator; Nabin Karki, Finance coordinator.
In collaboration with USAID/Tayar Nepal – Improved Disaster Risk Management Project, aims to conduct action research on index-based agri-insurance. It is an innovative risk financing tool proven to protect smallholder farmers when they lose crops to flood or drought. Payouts are designed based on an index developed from data coupled with satellite or weather stations, hydrodynamic flood model and drought model, and flood assessments.
This pilot research will be implemented in Bhajani Municipality of Kailali district in Province 7. First, the project will identify whether index-based insurance can be designed to effectively transfer risk for smallholder farmers. Then, it will assess how an index-based insurance product might be delivered in the field.