Experts and policymakers have called for the urgent expansion of climate insurance coverage for marginal communities in Bangladesh’s coastal regions, stressing that vulnerable households are increasingly unable to withstand escalating climate-induced shocks without structured financial protection.
They emphasised that the government should assume responsibility for paying insurance premiums in order to safeguard low-income families from repeated economic losses caused by cyclones, floods and other climate-related disasters. In addition, they underlined that such funding should be sourced from international climate finance mechanisms, noting that although developed countries have long pledged support to climate-vulnerable nations such as Bangladesh, adequate compensation has not materialised.
These issues were discussed at a divisional roundtable on a pro-poor, gender-sensitive and human rights-based Climate and Disaster Risk Finance and Insurance (CDRFI) framework for coastal regions. The event was organised in Khulna on Saturday by AOSED (An Organisation for Socio-Economic Development), with support from CARE Bangladesh.
AOSED is currently implementing the Multi-Actor Partnerships on Climate and Disaster Risk Finance and Insurance (MAP CDRFI) project in Bagerhat and Satkhira districts. The initiative runs from April 2023 to March 2026 and is financially supported by BMZ, with technical assistance from CARE Bangladesh.
Key institutional positions and statements
A range of government officials, academics, development practitioners and civil society representatives took part in the discussion, highlighting governance gaps, financing constraints and implementation challenges.
| Speaker | Position | Key observation |
|---|---|---|
| Shamim Arfeen | Executive Director, AOSED | Need for insurance premiums to be state-funded and climate finance secured internationally; criticised unmet global commitments since 1995 |
| Nazrul Islam Monju | Administrator, Khulna City Corporation | Lack of political platforms for climate issues; pledged to raise concerns with authorities |
| SM Monirul Hasan (Bappi) | Administrator, Khulna Zila Parishad | Need to protect crops, households and safe drinking water access |
| Prof. Anwarul Kadir | Chief Executive, Sundarbans Academy | Climate insurance remains ineffective due to profit-oriented policy focus |
| Prof. Sharif Hasan Limon | Khulna University | Importance of robust national and local climate data systems |
| Prof. Dr Nazia Hasan | Academic | Need for a long-term, research-based master plan |
| Md Nazrul Islam | Deputy Director, Department of Agricultural Extension | Ongoing but challenging crop diversification in coastal areas |
| Bishwajit Kar | Assistant General Manager, Sadharan Bima Corporation (Khulna) | Climate insurance identified as key mitigation tool |
| Ashik E Ilahi | NGO representative, Satkhira | Corruption undermining public trust in insurance systems |
| Himadri Shekhar Mondal | Technical Coordinator, CARE Bangladesh | Complexity of distinguishing grants, loans and commercial climate finance |
Shamim Arfeen stated that developed countries have made financial and technological commitments since 1995 alongside pledges to reduce emissions; however, emissions have instead increased by 34.4 per cent over the period. He further noted that instead of providing adequate compensation, existing financial mechanisms often place additional debt burdens on vulnerable countries.
He also urged stronger preparation ahead of major international climate negotiations, including the Bonn Climate Conference in Germany and COP31 in Turkey, to secure improved financing outcomes.
Speakers also stressed that climate insurance systems must be made more accessible and user-friendly for marginalised communities. Insurance providers were encouraged to simplify processes, while governments were urged to ensure premium coverage through international funding channels.
Concerns were further raised regarding weak data infrastructure, policy inconsistency, limited political prioritisation of climate issues, and growing mistrust in insurance systems due to governance challenges.
Participants agreed that climate insurance is increasingly essential for reducing disaster-related losses in coastal Bangladesh, but its effectiveness depends on coordinated policy reform, reliable financing, and strengthened institutional capacity.