With the increasing impact of climate change, we see worsening of droughts in various parts of the world. The recent report from Météo France (01/02/2021) even reported that the duration ofsummer droughts will increase by 30% to 50% inthe upcoming decadeWATCH THE QNA SESSION ON DROUGHT RESILIENCE AND SATELLITE DATAASK FOR A QUOTE ➞
AXA Climate’s parametric solutions protect agribusiness from climate risks allaround the world, covering financial losses andsecuring returns. Parametric insurance policies are structured using various indices derived from weather stations’ data, satellite data, and government statistics. The claim process is transparent and quick using third-party source data and no loss adjusters or farm visits are required to assess the loss.
How does it work
We structure your coverage with a relevant index and predefine the threshold and payout amonts
We monitor the climate index and if it reaches the predefined threshold...
...You receive a payout within a few days
Parametric drought insurance based on soil moisture index
A cooperative wishes to insure itself against drought risks that may impact its crop production.
Pain point: not many parametric insurance coverage is available on the market due to its complexity.
Drought Protection is structured using several indices such as soil moisture, cumulative rainfall, or NDVI.
We discuss with the client for the type of index used, the level of deductible, and together we predetermined the payment structure.
A prolonged drought resulted in a crop shortfall in corn and sunflower production in Romania. The curve line on the graph below indicates average soil moisture index per year. There is a strong correlation between soil moisture index and average yield. The drop of yield in 2016 which correlates to the level of soil moisture -1 SMI triggered a payout to the client. We issued the payout within 10 working days without any discussion needed.
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When to contact us?
as soon as you have your sowing schedule
Subscription date ends one month before sowing
Data we will need from you:
Region of operations
Crop margin to insure (€)
Expected planted area in hectares (ha)
Resources on Drought Insurance
Understand how drought insurance
at AXA Climate
AXA Climate Drought Insurance DOWNLOAD ➞DOWNLOAD ➞
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