Kshema General Insurance is set to raise $20 million from the Green Climate Fund (GCF), an international financing body created under the Paris Agreement.
According to a company statement, the funding will be used to expand its insurance and financial protection services for small and marginal farmers, who make up about 86% of India’s farming population and are increasingly vulnerable to the effects of climate change.
The investment comes as Kshema seeks to reach more uninsured farmers and crops, strengthening its capacity to underwrite agricultural risks.
Part of the capital will be used to upgrade Kshema’s Cognitive Engine, helping the company provide farmers with customised insurance, weather alerts, crop health updates, and guidance on sustainable farming.
The deal marks the Green Climate Fund’s first investment in a microinsurance solution aimed at providing crop insurance for smallholder and marginal farmers vulnerable to climate risks.
“Harnessing insurance for climate resilience in Indian agriculture’ is a landmark for GCF,” said Kavita Sinha, Director of the Green Climate Fund’s Department of the Private Sector Facility.
“This comprehensive solution includes early warning and capacity building of vulnerable farmers for sustainable agriculture practices,” she added.
GCF is increasingly looking to partner with national institutions to deploy insurance solutions aimed at protecting rural livelihoods from climate shocks and supporting more sustainable and resilient agricultural systems.
