Index-based flood insurance – Solutions brief

The Zurich Climate Resilience Alliance’s ‘Solutions’ series shares practical and replicable local knowledge through our work across the world on how to build resilience to climate hazards. To help compensate smallholder farmers in the Lower Karnali River Basin, Nepal, an index-based flood insurance (IBFI) product was developed as a flood risk transfer mechanism. IBFI has enabled insured farmers to receive rapid payouts after flooding events, which has facilitated quicker recovery, protected their production, and strengthened their economic resilience.