Spring frost represents a financial risk for fruit and wine growers since orchards and vineyards are particularly sensitive to freezing temperatures during the growing season.

AXA Climate parametric coverage is structured using the minimum daily temperature index. We monitor the index using data from a reference weather station close to the insured location. Linear payout structure allows to gradually increase payout according to the drop in temperature and no loss adjusters are required to assess the loss insuring rapid payout.

How does it work?

1

We structure your coverage with Minimum Daily Temperature Index and predefine the parameters when the coverage shall apply

2

We monitor the minimum daily temperature and as soon as it falls below the predefined threshold…

3

…You receive the payout few days after the end of the risk period.

1

We structure your coverage with Minimum Daily Temperature Index and predefine the threshold, payout structure and exit together with the client

2

We monitor the minimum daily temperature and as soon as it falls below the predefined threshold…

3

…You receive the payout few days after the end of the risk period.

When to contact us?

Contact us up until one month before the start of the risk period.

 

Data we will need from you:

  • GPS location
  • Crop value to insure (€)

Case study

Example of a parametric cover for a Bordeaux wine grower

Client need

A wine grower in Bordeaux is looking for an insurance solution to protect its vineyard against spring frost that may damage its wines.

Pain point: lack of capacities on the traditional insurance market for high-value crops as well as high level of deductibles.

Our solution

FROST Protection parametric coverage is structured using the data from a reference weather station close to the insured location. The parametric cover pays out as soon as the minimum daily temperature drops below the predefined threshold, no deductible is applied.

The result

In the end of April 2017, France was hit by a cold snap that brought a series of overnight frosts. The temperature fell to -0.9°C and the payout of 30% of the Sum Insured was transferred to the client at the end of the risk period.