A $2 million grant approved by the Asian Development Bank (ADB) Board of Directors will aid the development of the micro insurance sector in Bangladesh and help to reduce the vulnerability of the poor from sudden losses of income. Around 20,000 people in Bangladesh are expected to directly benefit from the grant, funded by the Government of Japan. The money will finance the development of low-cost insurance services to protect the livelihoods of poor households, especially women, from risks such as accidents, illness, theft, and natural disasters. The grant will also fund an insurance awareness campaign and training to at least 50,000 rural poor households. Although micro credit is well-established in Bangladesh, micro insurance, while gaining in popularity, is still a relatively new concept. It is estimated that 93% of the country’s total population have no access to insurance services. These types of initiatives
are going to be useful as natural disasters related to climate change mount.