Bangladesh faces increasing flood risk threatening vulnerable communities and their livelihoods. To address this, the government of Bangladesh has developed its first macro level index-based risk transfer product linked to a contingency fund, with financial and technical support from the GSFF and the World Bank.
The World Food Programme serves as the operational delivery partner to ensure payouts reach affected households and enables linkage to its anticipatory action program offering beneficiaries covered under both programs a “continuum of support”.
Building on feasibility studies, regulatory reviews, and community identification work, both financial instruments became active in June 2026.
Bangladesh's Jamuna river basin faces escalating flood risks driven by increasingly unpredictable rainfall, threatening the livelihoods of hundreds of thousands of vulnerable households.
To address this, the Global Shield Financing Facility (GSFF) is providing a US$9 million grant to co-finance a broader US$102 million World Bank project aimed at strengthening Bangladesh's flood management and financial preparedness capacity.
The project centers on developing two complementary CDRFI instruments:
- A macro/sovereign index-based risk transfer product linked to a US$1.4 million contingency fund.
- A community protection fund designed to cover more frequent and smaller-scale flood events outside the insurance product's scope, and to cover basis risk events.
Together, these instruments are expected to provide relief for up to 100,000+ households, with payouts equivalent to half a month of livelihood and welfare support delivered through digital financial service providers to ensure transparency and accountability. World Food Programme serves as the operational delivery partner, leveraging its anticipatory action database of flood-vulnerable households in the Jamuna region. Both instruments are fully operational as of June 2026.
Meet the key teams
Jamuna is one of the largest and most dynamic rivers in the world. It provides a lifeline to millions of people, Bangladeshis who farm its banks, fish its waters, and build their homes along its shores. Yet, the river is a paradox. The same river becomes a force of devastation when the rains come heavy— washing away harvests, livestock, and livelihoods, displacing people and pushing them to poverty in a matter of days.
Capacity building
The World Bank Group (WBG)’s “Executive Education Program on Disaster Risk Finance (DRF) for Bangladesh” recently concluded in Savar, Dhaka after four days of high-engagement learning with senior Government of Bangladesh (GoB) officials and development partners. It was delivered as a WBG Academy Pilot Practitioner Program and hosted in collaboration with the University of Dhaka’s Center for Policy Research on Business and Development.
Videos
Kamrul Hoque Maruf: Closing the Disaster Financing Gap in Bangladesh
Sumati Rajput: Supporting Bangladesh's Journey Toward Financial Resilience
Md. Zakir Hossain: Scaling Up Disaster and Climate Insurance in Bangladesh
Mohammad Helal Uddin: Building Financial Resilience Against Disasters in Bangladesh
M. M. Mahamudullah: Reaching Vulnerable Communities After Disasters
Md. Ashraful Alam: Strengthening Bangladesh's Disaster Preparedness and Response
Dr. Aditi Shams: The Role of Academia in Advancing Disaster Risk Finance
Md. Abdul Gafur: Integrating Disaster Risk into Bangladesh's Planning Cycle
Event Resources
Photos
Resources & Documents
