Agriculture is a key sector inBangladesh, but it is highly exposed to risks. Whileagriculture is a source of employment and livelihood fornearly one in two adults in Bangladesh and contributes about16 percent to gross domestic product (GDP), it is highlyexposed to natural hazards. In the past, the government ofBangladesh and development partners have providedsubstantial support to farmers in the aftermath of largedisasters, but this approach has disadvantages in thatsupport is not guaranteed to farmers and may be slow.Agricultural insurance offers the government a planned,fast, ex ante alternative to ad hoc disaster response, onethat: (1) reduces the ex post fiscal burden on thegovernment, (2) improves farmers’ resilience to shocks, and(3) supports the expansion of agricultural credit.International experience shows that government can play avariety of roles to support the responsible scale-up ofagriculture insurance. The ministry of livestock andfisheries, and other key public and private sectorstakeholders, the World Bank Group team has identified fourpotential types of agricultural insurance to offer inBangladesh, all of which will require implementation througha partnership between the public and private sectors. Thefour types are dairy cattle insurance, aquacultureinsurance, crop insurance, and fully subsidized agriculturalinsurance for the most vulnerable.
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