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Bundling flood insurance and post-flood recovery to agriculture in improving smallholder livelihoods in South Asia

Urban wetlands, Colombo, Sri Lanka. Photo: Samurdhi Ranasinghe (IWMI)
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Project description

Seasonal weather fluctuations directly and dramatically shape rural household welfare in developing countries. With climate projections of more severe and more frequent extreme weather events, this vulnerability will likely remain central to global poverty concerns and policy debates for the coming decades. The ongoing IWMI lead Index-based flood insurance (IBFI) products represent a promising and exciting innovation that could allow the benefits of insurance to protect the climate-related risks that vulnerable rural smallholder farmers. IBFI was successfully pilot in Bihar (India) that integrates hi-tech modeling and satellite data to predetermine flood threshold for speedy compensation to support low-income, flood-prone communities. This project will expand by bundling flood insurance and post-flood recovery to agriculture, which turns out to be complementarity that makes bundling potentially interesting among smallholder farmers. A bundled crop specific post-flood management options product can offer monotonic benefits as flood severity increases to cover low to moderate flood events i.e. depth and duration, which can substantially reduce the actuarially fair premium associated with the flood insurance. The project in partnership with seed companies will introduce flood-resistant seed varieties in the areas crop damage by floods for rapid agriculture production before moving to next crop season. The project will develop business model among public-private sector and policy briefing to government agencies for substantial investments in such innovations to improve smallholder farmers? adaptive capacity in the face of climate change, with an emphasis on improving livelihoods for women and the youth.


  • Policy brief to high-level decision makers on the project scope in DRR and agriculture development
  • Project inception workshop and stakeholder consultation
  • Knowledge management and communication strategy discussion with IWMI and CCAFS
  • To develop scaling toolbox of combined remote sensing data, flood model and crop growth model
  • Capacity building program on the use of earth observation data and flood insurance in FRM
  • Global desk review on the post-flood recovery in agriculture in flood risk management
  • Develop combined SAR and flood model for scaling up flood insurance products in South Asia
  • Scientific approach in mapping post-flood recovery in agriculture for improved CCA and building resilience
  • Pilot case studies in the implementation of post-flood recovery strategy including field laboratory analysis
  • Peer-reviewed research articles related to flood insurance and post-flood recovery
  • Business model on the bundled flood insurance and post-flood recovery in agriculture for flood resilience
  • Socio-economic assessment and institutional analysis in target states in SA for policy recommendation

Project Timeline:

Jan 2019 – December 2021

Expected outcomes

  • Capacity building programme to stakeholders on the use of advance satellite data and robust technology in flood mapping and risk transfer products
  • Drought insurance review and product development in MENA region.
  • Develop business models and economic evaluation of the bundled solutions for scaling up index insurance in South Asia
  • To develop effective policy frameworks for up-scaling and contribute to CSA technologies.
  • Pilot case studies to demonstrate post-flood recovery in agriculture including laboratory analysis and agriculture productivity outcomes
  • Community awareness among women on the bundled solutions in flood risk management
  • Communication products (magazine, blog, social media output, presentation and brochure) will be periodically produced during the project period

Gender and youth

The project will connect with local and civil society organization including women’s organizations promote social equity (including gender) and reduce the constraints women’s access to insurance and climate information and promote overall women’s adaptive capacity throughout project implementation.


More information

For more information, please contact project leader Dr. Giriraj Amarnath, International Water Management Institute (IWMI) (Email: a.giriraj[at]