New parametric insurance product to be developed for emergency flood relief costs in Bangladesh
Vivid Economics and a consortium of partners have received funding from the UK Space Agency to design a parametric insurance product for emergency flood relief costs in Bangladesh. The project aims to make post-disaster response faster, cheaper, and more efficient. To achieve these goals, we will develop a meso-level parametric insurance product which rapidly disburses funding for disaster relief and recovery to the government based on real time updates of satellite imagery on flood events. We will also develop a budget allocation platform to provide guidance on where and for what purpose relief and recovery funding should be allocated.
We are currently in the discovery phase, where we are seeking to establish technical feasibility and secure stakeholder buy in to determine the viability of the project plan. If the plan is viable, we will move into the operational phase which will focus on developing the full insurance product and the budget allocation platform.
The UK Space Agency’s International Partnership Programme (IPP) is a five-year, £30 million per year initiative designed to utilise the UK space sector’s research and innovation strengths to deliver measurable and sustainable economic, societal and/or environmental benefits to developing countries. Projects within IPP span a variety of themes including: building climate/disaster resilience; improving agriculture; reducing deforestation; preventing and reducing maritime pollution and illegal fishing; optimising renewable energy production; and improving access to appropriate and affordable financial services. IPP is funded from the Department for Business, Energy and Industrial Strategy’s (BEIS) Global Challenges Research Fund (GCRF). This £1.5 billion Official Development Assistance (ODA) fund supports cutting-edge research and innovation on global issues affecting developing countries. ODA-funded activity focuses on outcomes that promote long-term sustainable development and growth in countries on the OECD Development Assistance Committee (DAC) list. IPP is ODA compliant, being delivered in alignment with UK Aid Strategy and the United Nations’ (UN) Sustainable Development Goals (SDGs).