Building Climate Resilience in Haiti through Parametric Insurance

The Challenge

Haiti often experiences natural disasters such as hurricanes, floods, and droughts. However, it lacks reliable historical data and technology to manage these events.

This makes it hard for insurance companies to create good risk management products in Haiti. As a result, smallholder farmers and communities are at risk of climate-related losses. Innovative, data-driven insurance solutions were essential to address these gaps and build resilience.

The Approach

Advanced Technology & Data Integration

WRMS teamed up with the World Food Programme (WFP) to start a Weather Index Insurance (WII) program. This program helps protect Haitian farmers from climate risks, such as heavy rain and drought.

WRMS used SecuSense, a modern Data Management System (DMS), to gather real-time climate data. It collects information from trusted sources like ECMWF and GPM. Remote sensing tools, including NDVI, MODIS, and Sentinel-2, allowed for precise weather tracking and crop health monitoring.

Custom Calibration for Local Adaptation

WRMS created a special insurance solution for Haiti’s weather and geography. The team regularly updated the model to ensure payouts match local climate events. These ongoing adjustments guaranteed that the product remained compliant with changing environmental and regulatory requirements while delivering swift and reliable financial relief to farmers.

The Solution

Implementation & Monitoring

The Weather Index Insurance program was rolled out in the Grand Anse and Sud regions, initially covering 5,000 farmers. WRMS continuously monitored the weather to track and gather data.

The system used real-time data to trigger automatic payouts when it reached certain climate thresholds. This provided quick financial cushion for farmers affected by droughts or heavy rain. It also allowed them to adjust to Haiti’s changing climate.

Customize Insurance Products

Custom calibration allowed the program to reflect localized weather conditions. WRMS aligned the insurance model with real-time climate data. This made payouts timely, clear, and suited to farmers’ needs.

This flexibility helped WRMS adjust the solution as climate patterns changed. It became a dependable safety net for Haiti’s farming sector.

The Impact

By 2023, the program expanded to cover 7,500 farmers, providing immediate financial relief during climate events. WRMS aims to reach 50,000 farmers by 2024. They are also looking into new financial tools to help build resilience.

This initiative proves how parametric insurance can strengthen climate resilience in vulnerable regions and presents a scalable model for other areas facing similar challenges.