Igloo’s Weather Index Insurance protects coffee farmers against extreme weather conditions, and they plan to expand to more markets.
Insurance tech firm Igloo is expanding blockchain-based insurance to coffee farmers after a successful run with rice farmers in Vietnam.
Southeast Asia is one of the biggest coffee producers in the world with Vietnam and Indonesia producing 30.4 million and 11.4 million bags of coffee per year respectively. Other countries like Thailand, Laos, and the Philippines are also important global producers which highlights the region’s importance in the global coffee industry.
Due to climate hazards like suboptimal temperatures and weather volatility, it potentially disrupts supply chains and affects millions in losses for farmers across the region. Current insurance products on the market targeting farmers share a common problem of incompatibility with the real, frequent risks faced by coffee farming, and the damage assessment process is also complex and time-consuming.
Igloo leverages blockchain technology to monitor rainfall data and calculate claims using pre-assigned values for losses due to natural causes. By hosting their solution on a public blockchain, it also helps eliminate the need to individually verify claims while ensuring that the setup is transparent, consistent, and unbiased.
The Weather Index Insurance will be made available to farmers in five Central Highlands provinces of Kon Tum, Gia Lai, Dak Lak, Dak Nong, and Lam Dong in partnership with PVI Insurance, Vietnam Meteorological and Hydrological Administration (VNMHA), Saigon Hanoi Insurance Corporation (BSH), and international reinsurer SCOR. The project starts at US$ 42 per hectare and provides coverage of up to
US$1,700 per hectare.
The blockchain-based Weather Index Insurance affirms our commitment to providing products with affordable prices and diverse coverage, and utilising technology in the most efficient way”, shared Raunak Mehta, Co-Founder and CEO of Igloo.
Launched late last year, the Weather Index Insurance for rice farmers has now covered over 6,000 hectares of rice fields in 8 provinces, having protected many farmers from unpredicted weather conditions.
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