Willis, Global Parametrics launch parametric insurance for Vietnam coffee farmers

Willis and Global Parametrics have launched a groundbreaking parametric insurance solution for coffee farmers in Vietnam, aimed at providing timely financial relief due to drought conditions affecting the 2024 coffee growing season. The policy, placed in early 2024 with Bao Minh Insurance Corporation, utilizes satellite data to monitor rainfall levels; payouts are automatically triggered if rainfall falls below predefined thresholds, streamlining the claims process. The initiative is supported by the Natural Disaster Fund (NDF), a public-private partnership backed by the UK government and Germany's KfW development bank. This innovative program is part of the broader 'De-Risk South-East Asia' initiative, which includes partnerships with ECOM Agroindustrial Corp. Ltd and the University of Southern Queensland. Industry leaders emphasize the importance of such financial tools for adapting to climate change and ensuring the sustainability of the coffee industry. The program aims to enhance the resilience of farmers in the face of increasingly volatile climate conditions.