Weather Index Insurance for Honduran Farmers
Case Study Weather Index Insurance for Honduran Farmers THE CHALLENGE Honduras relies heavily on agriculture, but climate risks increasingly threaten key export crops like coffee, sugarcane, tomato, and corn. Smallholder farmers, who are the backbone of this sector, face constant threats from extreme weather events like tropical cyclones and droughts. With crop failures and financial losses always looming, many farmers struggle to sustain their livelihoods. The lack of protection and inclusive support programs makes it clear: there’s an urgent need for innovative solutions to strengthen climate resilience and secure their future. THE APPROACH UPL, in collaboration with WRMS, developed a Weather Index Insurance (WII) product tailored to the needs of Honduran farmers. This parametric solution provides coverage based on predefined weather events like excess rainfall and drought which eliminates the need for on-site loss assessments. The product uses real-time data from satellites and weather stations to trigger automatic payouts as soon as climate thresholds are breached to ensuring fast financial payouts. By integrating the WII product with UPL’s agricultural inputs, farmers receive comprehensive support during crop losses with need seed inputs without additional costs. To reduce the basis risk, the insurance model is calibrated to local weather conditions for accurate payouts. The partnership connects with local intermediaries to ensure farmers have access to credit, allowing them to invest in their crops without the fear of financial loss and new technology adoption. The Solution Parametric Insurance Model The WII product provides event-based coverage, with automated payouts triggered by specific weather conditions. This approach simplifies claims processing and ensure because of absence of on-site loss assessments. Comprehensive Coverage The insurance covers both excess rainfall and drought conditions to protect investments across crop cycles reducing risk exposure. Automated Payouts Real-time data triggers automated payouts, ensuring fast financial relief without lengthy claims procedures. Embedded Offering Combining insurance with UPL’s agricultural inputs creates a holistic solution that boosts productivity while mitigating climate risks. The Impact The WII program provided essential financial protection to smallholder farmers, enabling them to maintain productivity during extreme weather events. Quick payouts reduced vulnerability and promoted sustainable farming practices. By addressing the protection gap, the program contributed to long-term economic stability in Honduras’ agricultural sector. REACH OUT TO US
Building Climate Resilience in through Parametric Insurance Potato
Case Study Late Blight disease in Potato Background Late Blight is a lethal potato disease. In 2006 PepsiCo contract farmers lost 60 % of their crops due to this bane. It was difficult to extend cover under existing Crop Insurance programs due to moral hazard. What we did Analyzed & found high correlations between location, humidity, and temperature. Created an index to cover blight risk specific to the region. Installed weather stations to minimize basic risk; critical for extending this kind of cover Impact Successfully ran the project for 10+ years Covered 10000+ potato farmers Enabled risk-free investment of small & marginal farmers in smart technology Demonstrated how insurance can be used by contract farming companies to sustain their farmer base REACH OUT TO US
Building Climate Resilience in Haiti through Parametric Insurance
Case Study 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. REACH OUT TO US
Securing Cumin Farmers In Village Rampara Of The Patan District In Gujarat
Despite Suffering Massive Crop Loss, Cumin Farmer Was Unaffected
IN-FOCUS : SMALLHOLDER TOMATO FARMERS OF HARYANA
IN-FOCUS : SMALLHOLDER PADDY FARMERS OF UTTAR PRADESH
