ISF continues to support Nagaland’s climate risk insurance program with further premium subsidy support

Nagaland, one of the smallest and most agriculture-dependent states in India, has long been vulnerable to high levels of disaster and climate-related impacts. To enhance Nagaland's ability to respond to natural disaster events, the InsuResilience Solutions Fund (ISF) co-funded the development and implementation of a parametric insurance solution. Following the successful development and launch of the insurance mechanism, ISF is now extending its support with further premium support.

High humidity, heavy monsoon rains leading to floods, and earthquakes have caused significant loss of life, injuries, and damage to both public and private property in Nagaland. In response to these challenges, the Nagaland State Disaster Management Authority (NSDMA), in collaboration with Tata AIG General Insurance Company Limited, pioneered a climate risk insurance solution aimed at enhancing the State Disaster Response Fund's (SDRF) capacity to respond to major climate events. This initiative, supported by the ISF, began with the development of a basic parametric excess rainfall cover piloted in 2020.

Thanks to its success, the ISF is now extending its support by providing premium support, further strengthening Nagaland's ability to manage natural disaster events. This continued collaboration is set to drive significant improvements in the existing insurance product, ensuring a more robust and tailored approach to disaster resilience.