Tamil Nadu

Tamil Nadu, India

Hundreds of thousands micro-entrepreneurs, labors and low income property owners rely on micro financing in Tamil Nadu India. Yet, when the annual rains hit, many customers often default on their loans or sell critical assets like livestock in order to avoid default. Insurance offered alongside the micro-loan can enable customers to weather regular flooding and build more stability into the local economy.

To develop a micro-insurance product for a local MFI in Tamil Nadu, Cloud to Street tested various public and private satellites for their viability and cost effectiveness as a operational insurance trigger at the micro and macro scale.

Specifically, we piloted Sentinel-1, PlanetScope, and TerraSarX during the 2017 Monsoon season to determine which was the most consistent and accurate in detecting floods that impact local customers. Ground truth points were collected by local field staff during flooding. We also analyzed the flood frequency over the state from the last 40 years in order to provide risk estimates.

Research from Munich Re shows that economies with a robust insurance markets are more likely to sustain growth years after a disaster than those that don’t. These results help GIZ or local microfinance institutes refine a microinsurance products to be offered in the state and that could serve as the foundation of a scalable insurance model for other parts of India and the world.

While the assessment is not public, please reach out for the results.