India's Nagaland receives payout from parametric monsoon insurance policy

By Henry Gale

March 31 - (The Insurer) - The state of Nagaland in northeast India has received its first payout under the parametric disaster insurance policy it purchased in August last year to protect critical infrastructure.

SBI General Insurance, the domestic carrier providing the coverage, announced that a claim worth 10.65 million rupees (around $125,000) had been paid to the Nagaland State Disaster Management Authority on March 21.

In a press release, the authority said the claim related to the 2024-25 monsoon season. The insured perils listed in the original tender invitation for the policy were excess rainfall and flood.

The authority was first covered by parametric rainfall insurance in a 2020 pilot supported by the InsuResilience Solutions Fund. The fund also provided premium financing for the current three-year policy, placed in August 2024 with reinsurers Munich Re and GIC Re.