Willis, a WTW business, and Global Parametrics, a CelsiusPro Group company, have unveiled parametric insurance cover to coffee farmers in Vietnam.
This payout compensates for losses incurred during the 2024 coffee-growing season due to low rainfall.
In early 2024, Willis placed the parametric solution with Bao Minh Insurance Corporation in Vietnam.
This insurance protects coffee farmers’ revenue against yield losses caused by insufficient rainfall during the flowering period, the release said.
The solution leverages satellite data to monitor rainfall levels in Vietnam’s coffee-growing regions, ensuring a “timely” payout when rainfall falls below predefined thresholds.
The risk capacity for these payouts was provided by the Natural Disaster Fund (NDF), a public-private partnership managed by Global Parametrics.
The NDF’s contributors include the UK’s Foreign, Commonwealth and Development Office and German development bank KfW.
The coffee climate protection insurance (CCPI) programme was developed by Willis and Global Parametrics under the De-Risk South East Asia initiative.
It involves collaboration with ECOM Agroindustrial Corp, Bao Minh Insurance Corporation and the University of Southern Queensland in Australia.
Global Parametrics CEO Angus Kirk said: “Many of these farmers operate on a small scale with limited financial resources, which constrains their ability to cope with the impact of deviations in rainfall and temperature patterns on their crops. We look forward to continuing our work with our partners in Vietnam.”
Willis alternative risk transfer solutions MD Claire Wilkinson said: “This programme supports the resilience of coffee farmers in Vietnam against the impacts of an increasingly volatile climate, giving them much-needed financial support and allowing them to recover quickly when adverse weather threatens their livelihoods.”
Willis Towers Watson (WTW) posted net income of $1.25bn (£992.24m) for the fourth quarter of 2024, an increase from $623m in the same quarter of 2023.
However, for the full year of 2024, WTW registered a net loss of $88m, compared with a net income of $1.1bn in 2023.
“Willis, Global Parametrics offer parametric cover for Vietnam coffee farmers ” was originally created and published by Life Insurance International, a GlobalData owned brand.
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