Kshema General Insurance raises $20 mn from Green Climate Fund

Kshema General Insurance has raised $20 million capital infusion from the Green Climate Fund (GCF) to expand insurance coverage.

The fund is the world’s largest climate-focused investment vehicle established under the Paris Agreement. The project, titled Harnessing Insurance for Climate Resilience in Indian Agriculture, is GCF’s first investment in a microinsurance initiative, which will be used for protecting smallholder and marginal farmers from climate-induced losses, according to Kavita Sinha, Director of GCF’s Department of Private Sector Facility.

The funding will help Kshema scale up coverage for uninsured farmers, who make up 86% of country’s agricultural population and increase capacity to underwrite crop risks linked to climate volatility.

Apart from insurance expansion, Natraj Nukala, founder of Kshema General Insurance. said that the investment will also help in expanding Kshema Cognitive Engine, the company’s proprietary technology platform which is designed to deliver customised insurance solutions and advisory services such as weather alerts, crop health insights.