New India Assurance, Howden India, and the non-profit organisation SEEDS (Sustainable Environment and Ecological Development Society) have launched a parametric insurance pilot to support cyclone-exposed communities along India’s eastern coast, including fisherfolk, who face recurring income losses due to frequent storms.
The pilot was launched on 29 October, the anniversary of the 1999 Odisha Super Cyclone, and covers 2,500 families in Cuddalore district, Tamil Nadu. In a statement on LinkedIn, Howden labelled the launch India’s “first parametric insurance pilot for coastal communities”, adding it was “a bold step towards climate resilience and inclusive risk protection.”
Each household receives cover of 25,000 rupees (approx. US$289) under a one-year policy, with payouts that rise according to wind speed and are automatically triggered by predefined cyclone intensity and proximity thresholds, linking compensation directly to meteorological data and removing the need for traditional loss assessments.
Aditya Verghese, SEEDS’ Head Centre of Excellence, Public Finance, commented on the pilot: “This is an opportunity to assess if parametric insurance can meet the needs of the most vulnerable coastal communities in the aftermath of disasters such as cyclones. The findings of these initiatives will be used to design and implement similar social protection programs across other geographies and contexts.”
India’s eastern and western coasts have seen an increase in severe cyclones in recent years, including Amphan, Yaas, Tauktae, and Biparjoy.
Early warning systems and mass evacuations have reduced loss of life, but economic losses remain high for coastal families. Homes, boats, nets, and livelihoods can be destroyed within hours, with recovery taking months or years.
“Parametric insurance represents a shift from reactive relief to proactive resilience”, said Dr. Manu Gupta, Co-Founder of SEEDS. “By linking science, finance, and community action, we are creating a model that not only helps vulnerable households recover faster but also builds their long-term adaptation to a changing climate.”
SEEDS is a non-profit organisation that works to build disaster resilience and climate adaptability among vulnerable communities across South Asia.
New India Assurance’s involvement in the cyclone parametric insurance pilot follows its recent launch of India’s first parametric pandemic insurance policy for Phoenix Mills Ltd. last month.
