Following the success of its solution with rice farmers, Igloo is expanding its offering to provide affordable parametric index insurance to coffee farmers in Vietnam.
Igloo, the Singapore based insurtech firm, has revealed its expanding its blockchain-based, parametric index insurance to coffee farmers in Vietnam as part of its aim to bring insurance coverage to underinsured communities in Southeast Asia.
Igloo’s Weather Index Insurance product helps farmers and their crops against extreme weather conditions while eliminating the need to verify claims individually – reducing transaction costs and enabling faster payouts. Following the success of the product for rice farmers, Igloo is expanding its solution to coffee farmers in five Central Highlands of Vietnam:
- Kon Tum
- Gia Lai
- Dak Lak
- Dak Nong
- Lam Dong
South East Asia’s daily coffee grind Vietnam and Indonesia are the two biggest producers of coffee in the world, with Vietnam producing 30.4 million bags and Indonesia 11.4 million bags per year. However, coffee harvests are in danger of being compromised as growing conditions become more difficult due to extreme climate and frequent serious climate events. |
How Igloo’s weather index works
Igloo’s Weather Index Insurance protects irregular rainfall distribution to even small-scale farmers. It has partnered with PVI Insurance, Vietnam Meteorological and Hydrological Administration, Saigon Hanoi Insurance Corporation, and international reinsurer SCOR to offer its solution.
In summary:
- Igloo collects and monitors rainfall data to calculate claims using pre-assigned values for losses due to natural causes
- Igloo utilises big data, real-time risk assessment, and end-to-end automated claims management
- Insurance is distributed via Igloo’s agriculture partners and its intermediary services platform, Ignite
- Claims payout are hosted on a public blockchain which Igloo says helps with transparency, consistency, and unbiasedness
Igloo said it also has plans to expand its blockchain-based parametric index insurance to protect more agricultural communities across Southeast Asia from more indices such as typhoons and earthquakes.
“Farmers all over the world are suffering from the enormous impacts of climate change which adversely affect their livelihood. We need to collectively invest more time and effort to protect them against unforeseen climate hazards. The blockchain-based Weather Index Insurance affirms our commitment to providing products with affordable prices and diverse coverage, and utilizing technology in the most efficient way.”
Raunak Mehta – Co-Founder and CEO, Igloo