Overview
Kshema General Insurance has secured a $20 million investment from the Green Climate Fund (GCF) to expand crop insurance coverage in India. The investment is part of the project titled “Harnessing Insurance for Climate Resilience in Indian Agriculture,” aimed at strengthening climate risk protection for small and marginal farmers.
Objective
The initiative focuses on enhancing financial resilience among small and marginal farmers, who represent nearly 86% of India’s agricultural population. The project seeks to mitigate the economic effects of climate-induced risks such as droughts, floods, and erratic rainfall, thereby reducing income volatility and supporting sustainable livelihoods.
Utilisation of Funds
The $20 million funding will be directed toward:
- Expanding Kshema’s capacity to underwrite climate-related crop risks.
- Extending insurance access to currently uninsured farmers in rural and semi-urban regions.
- Strengthening data and operational systems to improve agricultural risk management.
Technology Integration
A portion of the funds will be used to enhance Kshema’s Cognitive Engine, the company’s digital platform that delivers:
- Weather and crop health alerts
- Data-driven insights for farm-level decision-making
- Customised insurance products designed to meet region-specific needs
This integration of technology aims to make insurance more accessible, responsive, and farmer-centric.
Institutional Collaboration
The project has been developed in coordination with several key institutions, including:
- Ministry of Environment, Forest and Climate Change (MoEFCC)
- National Bank for Agriculture and Rural Development (NABARD)
- Insurance Regulatory and Development Authority of India (IRDAI)
It aligns with India’s broader goal under the “Insurance for All by 2047” initiative, which aims to ensure universal access to insurance coverage.
Summary
Kshema General Insurance has raised $20 million from the Green Climate Fund to expand climate-resilient crop insurance in India. The funds will support wider farmer coverage, digital platform enhancement, and risk management infrastructure, in collaboration with MoEFCC, NABARD, and IRDAI, aligning with India’s national insurance inclusion goals.
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