Kshema General Insurance Limited announced that the board of the Green Climate Fund (GCF), established under the Paris Agreement, has approved a capital infusion of USD 20 million. The funds will be used to expand financial protection for small and marginal farmers and their families, who make up 86 per cent of India’s farming population.
Kavita Sinha, Director of the Green Climate Fund’s Department of the Private Sector Facility, said, “Harnessing Insurance for Climate Resilience in Indian Agriculture’ is a landmark for GCF – it is GCF’s first investment to support an innovative micro insurance solution enabling provision of crop insurance against climate vulnerability for smallholder and marginal farmers. This comprehensive solution includes early warning and capacity building of vulnerable farmers for sustainable agriculture practices.
Sinha added, “By partnering with national institutions to deploy innovative insurance solutions, GCF is helping protect rural livelihoods from climate shocks while promoting more sustainable and resilient agricultural systems.”
The support from GCF aligns with the Government of India and IRDAI’s recent policy directions to expand insurance access across Tier-2 and Tier-3 towns, and supports national efforts to achieve ‘Insurance for All’ by 2047.
The GCF investment will also help Kshema extend its insurance coverage to more uninsured farmers and crops, enhancing its underwriting capacity. It will also be used to further develop the company’s technology platform, the Kshema Cognitive Engine, which provides tailored insurance solutions as well as services such as weather alerts, crop health updates, and information to promote sustainable agricultural practices.
