{"id":5656,"date":"2025-06-16T07:00:05","date_gmt":"2025-06-16T07:00:05","guid":{"rendered":"http:\/\/studentlearningportal.com\/?p=5656"},"modified":"2025-06-16T08:02:17","modified_gmt":"2025-06-16T08:02:17","slug":"world-bank-highlights-weather-index-insurance-to-raise-south-asia-climate-resilience","status":"publish","type":"post","link":"http:\/\/studentlearningportal.com\/index.php\/2025\/06\/16\/world-bank-highlights-weather-index-insurance-to-raise-south-asia-climate-resilience\/","title":{"rendered":"World Bank highlights weather-index insurance to raise South Asia climate resilience"},"content":{"rendered":"

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As South Asia faces escalating threats from extreme weather events, the World Bank Group is urging policymakers to scale up innovative financial tools such as weather-index insurance to help households and businesses manage climate risks more effectively.
\n<\/span>
\n\"world-bank-group-logo\"In a newly released report, From Risk to Resilience: Helping People and Firms Adapt in South Asia<\/em>, the World Bank identifies insurance, particularly weather-indexed insurance, as an important component of private sector adaptation to climate shocks.<\/p>\n

The region, which is home to nearly two billion people, is projected to see 89% of its population exposed to extreme heat and 22% to severe flooding by 2030.<\/p>\n

While the World Bank\u2019s report finds that awareness of climate risks is high, with more than 60% of households and firms across South Asia having experienced extreme weather in the last five years, and more than 75% expecting weather shock in the coming decade, most adaptation strategies remain basic.<\/p>\n

In fact, a vast majority rely on low-cost measures such as raising house foundations or improving ventilation, with limited uptake of advanced solutions like climate-resilient agricultural inputs or insurance-based risk transfer.<\/p>\n

To close this gap, the report recommends that governments choose to prioritise reforms to improve access to climate information and promote the uptake of market-based tools like weather-indexed insurance.<\/p>\n

The World Bank notes that these policies, alongside broader development efforts, can help mitigate financial losses from climate-related disasters and incentivise proactive adaptation.<\/p>\n

\u201cThe urgency is growing. People and firms are already adapting, but they are doing so with limited tools and few resources,\u201d commented\u00a0Martin Raiser, World Bank Vice President for South Asia.<\/p>\n

\u201cGovernments must act quickly to remove the barriers that prevent more effective adaptation. This includes removing distortions in land and labor markets, expanding access to finance and investing in public infrastructure to support people and businesses as they respond to climate risks,\u201d Raiser added.<\/p>\n

Insurance coverage in South Asia’s agricultural sector remains limited, despite the potential of weather index insurance and climate-smart farming practices to help build resilience. However, market imperfections, including limited access to credit and financial market constraints, are impeding broader adoption.<\/p>\n

\u201cPrivate sector adaptation could reduce one third of the region\u2019s projected climate damage, but this requires governments to strengthen enabling environments,\u201d added\u00a0Franziska Ohnsorge, World Bank Chief Economist for South Asia.<\/p>\n

Ohnsorge continued: \u201cAdaptation is most effective when markets function well and when essential services like transport, water, healthcare, and digital connectivity are widely accessible.\u201d<\/p>\n

Furthermore, the World Bank\u2019s report also highlights how targeted public investments in early warning systems, resilient infrastructure, and social protection, can complement private risk management approaches and create the foundation for scalable insurance markets.<\/p>\n

\u201cIn Bangladesh, investments in early warning systems and cyclone shelters have helped reduce fatalities during major storms. In India, cities like Ahmedabad are leading with heat action plans to protect urban populations from rising temperatures. They demonstrate how targeted investments, and effective institutions can help scale up local adaptation successfully,\u201d the World Bank Group said.<\/p>\n

The World Bank Group\u2019s findings underscore the importance of an integrated adaptation strategy that includes financial innovation, targeted infrastructure investment, and supportive regulatory environments. Among the tools identified to support resilience, weather-index insurance features as a potentially valuable mechanism to help households and firms manage the economic impacts of more frequent and severe weather events in South Asia.<\/p>\n

World Bank highlights weather-index insurance to raise South Asia climate resilience<\/a> was published by: www.Artemis.bm<\/a>
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This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. As South Asia faces escalating threats…<\/p>\n","protected":false},"author":1,"featured_media":5658,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"_links":{"self":[{"href":"http:\/\/studentlearningportal.com\/index.php\/wp-json\/wp\/v2\/posts\/5656"}],"collection":[{"href":"http:\/\/studentlearningportal.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/studentlearningportal.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/studentlearningportal.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/studentlearningportal.com\/index.php\/wp-json\/wp\/v2\/comments?post=5656"}],"version-history":[{"count":2,"href":"http:\/\/studentlearningportal.com\/index.php\/wp-json\/wp\/v2\/posts\/5656\/revisions"}],"predecessor-version":[{"id":5659,"href":"http:\/\/studentlearningportal.com\/index.php\/wp-json\/wp\/v2\/posts\/5656\/revisions\/5659"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/studentlearningportal.com\/index.php\/wp-json\/wp\/v2\/media\/5658"}],"wp:attachment":[{"href":"http:\/\/studentlearningportal.com\/index.php\/wp-json\/wp\/v2\/media?parent=5656"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/studentlearningportal.com\/index.php\/wp-json\/wp\/v2\/categories?post=5656"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/studentlearningportal.com\/index.php\/wp-json\/wp\/v2\/tags?post=5656"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}