Disaster insurance - A strong partner in disaster management

In an article in the Financial Express, Sonia Farjana and Habib Toriku discuss disaster insurance in Bangladesh. They write that while disaster insurance is still very limited in the country, it has many benefits including breaking the cycle of poverty by providing low-income households, farmers, and businesses with access to post-disaster liquidity; securing their livelihoods and providing for reconstruction; promoting investments in productive assets and higher-risk/higher-yield crops; and encouraging investment in disaster prevention if insurers offer lower premiums to reward risk-reducing behaviour.