Climate risks such as drought, frost, hail, diseases and others could heavily impact the crop production and result in financial losses to farming businesses and even disrupt the entire agricultural value chain.

AXA Climate parametric coverage is structured using the client’s historical yield data. The claims process is transparent using third-party source data and no loss adjusters or farm visits are required to assess the loss.

How does it work?

1

We structure your coverage with Regional Yield Index and predefine the threshold below the five-year average

2

We monitor the index and as soon as it is below the predefined threshold…

3

…You receive the payout after a few days after the data becomes available.

1

We structure your coverage with Regional Yield Index and predefine the threshold below the five-year average

2

We monitor the index and as soon as it is below the predefined threshold…

3

…You receive the payout after a few days after the data becomes available.

When to contact us?

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)

Case study

Example of a parametric cover for a wheat cooperative

Client need

A cooperative wishes to insure itself against various climate risks that may impact its crop production.

Pain point: no coverage is available on the traditional market since cooperatives are not considered to be producing entities.

Our solution

YIELD Protection uses regional reference yield as an index. We agree upon the level of the deductible with the client in advance and establish the threshold below the five- year average in the region.

The result

In 2016, a prolonged heat wave period resulted in 40% crop shortfall in wheat production. We applied the pre-defined 10% deductible of the regional reference yield. The payout of 30% of the Sum Insured was transferred to the client within two weeks upon the publication of the results by a governmental statistical agency.