Project Funded by: Asian Disaster Risk Reduction (ADPC) (December 2021 – July 2022)
Project Overview:
The project, implemented across Tikapur Municipality, Kailali, and Rajapur Municipality, aimed to enhance easy access to Parametric Flood Insurance products to cover fluvial flood risks in flood-prone areas. It involved the design and pilot of a Parametric Flood Insurance product for downstream communities of the Karnali River, piloted across 411 households during the monsoon of 2022 through community-based cooperatives utilizing Stonestep’s digital technology.
Partners:
- Consortium Partners:
- Practical Action
- Shikhar Insurance Co. Ltd.
- Distribution Partners:
- Narikalyana Sanakishan Krishi Shakari Sanstha Ltd.
- Didi Bahini Sanakishan Krishi Sahakari Sanstha Ltd.
- Ujyalo Multipurpose Cooperative Ltd.
Project Outputs:
- Parametric Flood Insurance Product:
- Developed to cover paddy loss against flood disasters.
- Based on flood risk modeling design incorporating remote sensing data, risk, and vulnerability assessment, and measured data.
- Digital Solution:
- Stonestep customized the EIGER system and developed an app to digitize the insurance administration process, including enrollment, customer care, and claim management.
- Distribution Innovation:
- Managed cooperative partners as group policyholders on behalf of their clientele.
- Facilitated easy access to Parametric Flood Insurance digitally at the community level for climate risk financing.
- Capacity Building:
- Communities: Raised awareness about Parametric Flood Insurance as a risk financing solution among partner cooperative working communities.
- Cooperatives: Enhanced cooperatives’ capacity through capital management training, and App and EIGER training. Trained eight staff from three cooperatives on insurance administration, capital management, and both back-end and front-end operations.
Project Outcomes:
- Risk Coverage:
- 411 households insured under the Parametric Flood Insurance product.
- 30 hectares of paddy cultivated area protected.
- Risk transfer equivalent to NPR 4,489,200.00 (USD 33,753).
- Claims paid amounting to NPR 1,122,300.00 (USD 8,438.34).
