India Plans Climate-Linked Insurance to Tackle Weather Risks
India Plans Climate-Linked Insurance to Tackle Weather Risks
IN · Published Oct 7, 2025
India is planning a nationwide climate-linked insurance scheme for rapid financial relief after extreme weather events.
The initiative uses parametric insurance models, triggering payouts based on predefined weather thresholds.
Pilot projects in states like Rajasthan and Nagaland have shown success in providing quick compensation.
Nationwide insurance for extreme weather events explored
India is actively exploring the implementation of a nationwide climate-linked insurance scheme, aimed at providing swift financial aid following extreme weather occurrences such as floods, heatwaves, and cyclones. This pioneering initiative will leverage parametric insurance models, which are designed to automatically trigger payouts once predefined weather conditions—like specific rainfall amounts or temperature benchmarks—are surpassed.
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