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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.
Author:

Practical Action

Language: English
Published By: Zurich Climate Resilience Alliance
Published date: June 2025

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Comments

  • MD Majharul Islam says:

    This is an insightful and practical initiative! The development of index-based flood insurance (IBFI) in the Lower Karnali River Basin is a great example of how innovative financial tools can support smallholder farmers. Rapid payouts not only help farmers recover quickly but also strengthen their long-term economic resilience. It’s encouraging to see solutions like this that combine local knowledge with climate risk management. For those seeking similar protection, InsureDirect offers tailored flood insurance solutions that provide comprehensive protection against flood damage
    Insure Direct
    . Truly a model worth replicating in other vulnerable regions!