Recently, Kshema General Insurance Limited stated that the board of the Green Climate Fund (GCF), which was created under the historic Paris Agreement, has approved a USD 20 million capital infusion. The funds will be utilised to increase the financial resilience of small and marginal farmers—who make up 86% of India’s farmers—and their families against the effects of climate change.

The funds from GCF will be used to expand Kshema’s product offerings, increasing its underwriting capacity and reaching more uninsured farmers and their crops. In addition to offering curated insurance solutions to rural India, it will be further utilised to fortify Kshema’s technological platform, Kshema Cognitive Engine, which will also support sustainable agricultural practices by giving farmers proactive information on crop health and weather alerts.

Natraj Nukala, the founder of Kshema General Insurance Limited, commented on this development, saying, “We appreciate the GCF board recognising the importance of our idea in the context of climate change adaptation. I also want to express my gratitude to the National Bank for Agriculture and Rural Development, the Ministry of Environment, Forests, and Climate Change, and the empowered committee members who represent other pertinent agencies for their ongoing support and direction.

The Green Climate Fund’s first investment to support an innovative microinsurance solution that enables the provision of crop insurance against climate vulnerability for smallholder and marginal farmers is “Harnessing Insurance for Climate Resilience in Indian Agriculture”, according to Kavita Sinha, Director of the Green Climate Fund’s Department of the Private Sector Facility. Early warning systems and the development of vulnerable farmers’ skills for sustainable agricultural practices are part of an all-inclusive strategy.

“GCF is supporting more resilient and sustainable agricultural systems while assisting in safeguarding rural livelihoods from climate shocks by collaborating with national institutions to implement cutting-edge insurance solutions.”

In addition to supporting national efforts to achieve “Insurance for All” by 2047, the GCF support strengthens Kshema’s efforts to increase insurance coverage throughout Tier-2 and Tier-3 towns in accordance with recent policy directives from the Government and IRDAI.