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Crop insurer Kshema General Insurance Ltd. said on Wednesday it received approval for a $20 million capital infusion from the Green Climate Fund (GCF), the world’s largest climate-focused investment vehicle established under the Paris Agreement. The investment marks GCF’s first financing of a micro-insurance solution, aimed at protecting smallholder farmers in India from climate-related losses. The funding will help Kshema expand its coverage among India’s small and marginal farmers, who make up 86% of the country’s farming population, and strengthen its underwriting capacity. The company plans to use the funds to enhance its proprietary “Kshema Cognitive Engine,” a technology platform that offers weather alerts, crop health updates, and information on sustainable agricultural practices in addition to insurance products. “We are grateful to the board of GCF for seeing the value of our proposal in the context of adaptation to climate change,” said Natraj Nukala, Founder of Kshema General Insurance. “I also thank the Ministry of Environment, Forests and Climate Change and the empowered committee members representing other relevant authorities, along with the National Bank for Agriculture and Rural Development, for their continuous guidance and support,” he added. “Harnessing Insurance for Climate Resilience in Indian Agriculture is GCF's first investment to support an innovative microinsurance solution enabling provision of crop insurance against climate vulnerability for smallholder and marginal farmers,” said Kavita Sinha, Director of GCF’s Private Sector Facility. She added that by partnering with national institutions, the fund aims to “help protect rural livelihoods from climate shocks while promoting more sustainable and resilient agricultural systems.” Founded in 2018 and licensed by the Insurance Regulatory and Development Authority of India (IRDAI) in 2023, Hyderabad-based Kshema offers crop protection products such as Sukriti, Prakriti, and Samriddhi, as well as its bancassurance plan, Kisan Sathi. The company uses AI-driven risk modelling and spatial data analytics to tailor insurance coverage to farmers’ specific needs. (Edited by Suman Singh)
