India remains among the top five countries globally most vulnerable to natural hazards, with increasing exposure to extreme weather events such as floods, droughts, cyclones, and erratic rainfall. Climate models continue to forecast heightened variability in temperature and precipitation patterns, placing further strain on India’s agriculture sector. For the 78 percent of Indian farmers who are smallholders, building resilience to climate risks is critical. Climate-smart agriculture solutions, supported by appropriate risk financing mechanisms, remain vital to safeguarding their livelihoods.
To address these challenges, the InsuResilience Solutions Fund (ISF) had partnered with the Development of Human Action (DHAN) Foundation, DHAN International, People Mutuals, and IBISA to implement a project titled “Building Climate Resilient Agro-Ecosystem of Smallholder Farming.” In Phase I, the project focused on developing and refining mutual crop and livestock insurance products, establishing Risk Management Centres (RMCs), and providing extensive training and capacity-building to support smallholder farmers.
Building on this success, ISF has approved the extension of the project into a second phase. In Phase II, DHAN and IBISA will expand the initiative across the six existing states: Tamil Nadu, Karnataka, Maharashtra, Odisha, Telangana, and Andhra Prades; and into a new target region, Madhya Pradesh. The goal is to reach an additional 100,000 farmers, with a strong focus on inclusivity and gender equity.
The project continues to leverage the institutional model of Federation Mutuals, a farmer-owned and governed mutual risk-sharing group, to ensure a demand-driven approach. These federations not only offer climate risk insurance but also empower smallholders through education, advisory support, and access to financial services. This comprehensive system remains a viable alternative to existing public insurance schemes, offering faster compensation, crop-agnostic coverage, and improved financial inclusion.
Managed by Frankfurt School
GRMA hosted by ISF
