Securing livelihoods against climate shocks

“We bridge the gap between climate vulnerability and financial stability, turning insurance into a practical tool for national resilience.”

Farzanah Chowdhury  Managing Director and CEO Green Delta Insurance PLC

Green Delta Insurance (GDI) is a premier insurer, uniquely integrating inclusive microinsurance into its core business to provide sustainable financial protection for climate-vulnerable rural communities and smallholder farmers across Bangladesh.

The Daily Star (TDS): What specific climate vulnerabilities in Bangladesh led Green Delta Insurance to move beyond traditional insurance and develop a “Climate Risk Insurance” model?

Farzanah Chowdhury (FC): Bangladesh’s climate risk is structural, not occasional. Floods, cyclones, and erratic rainfall repeatedly disrupt rural livelihoods, particularly for smallholders outside formal safety nets. Traditional insurance, designed for low-frequency, high-value asset loss, was not built for this reality. We moved beyond conventional insurance because the greatest losses are often income and productivity, not just physical assets. Repeated shocks erode earnings and push households into debt. Green Delta Insurance is the only publicly listed insurer globally to integrate inclusive microinsurance into its core business not as CSR, but as a sustainable protection mechanism. Our philosophy is “any product, anywhere, any season,” utilising partnerships with the UNDP, IFC, and WFP to reach underserved communities.

TDS: How does GDI’s “parametric” model function, and what role does AI play in verifying livestock claims?

FC: Our parametric model triggers automatic payouts when predefined climate thresholds are crossed. By utilising satellite data and meteorological records, we remove subjectivity and eliminate the need for individual claim filings. For livestock, GDI uses AI-enabled biometric muzzle-print recognition and NFC tagging. This digital system allows us to verify animal identity instantly and prevent fraud, making rural livestock insurance commercially viable. Compared to traditional settlements that take months, our tech-driven process delivers payouts to mobile wallets within days, ensuring transparency and building trust among skeptical communities.

TDS: What are the quantitative milestones of GDI’s climate insurance portfolio in terms of household reach and claims disbursed?

FC: GDI has built the nation’s largest inclusive portfolio, insuring 1.63 million+ households across 50 districts. We have disbursed BDT 232+ million in claims, supporting 338,000 crop farmers and 25,000 flood-affected families. These milestones represent confidence restored, debt avoided, and stabilized livelihoods. Our experience shows that tech-driven insurance is a practical resilience tool, not just a financial product, ensuring national resilience.