I ndia is taking its first steps toward insuring itself against a more unpredictable climate. The government last month gave a nod to exploring a nationwide climate-linked insurance plan that would deploy parametric insurance models. It would release payouts when heat, rainfall, or wind levels cross certain thresholds. This national plan could become the country’s first serious attempt to move beyond slow, ad hoc disaster relief funds and toward a system that anticipates losses before they spiral.

The move comes as extreme weather grows more frequent and more expensive. Between floods, droughts, cyclones, and heatwaves, India faces rising economic losses each year, 93 per cent of which are uninsured according to Swiss Re . This means costs are being borne by households, businesses,

See Full Page