Global Parametrics, a subsidiary of CelsiusPro Group, has partnered with Frontier Markets, India’s rural social commerce platform, to provide affordable crop insurance to 5,000 women smallholder farmers, benefiting approximately 24,000 individuals in its first year.
Global Parametrics has created a parametric drought insurance product based on its Water Balance Index solution, which tracks the balance between rainfall and evaporation over a defined period.
This index serves as an indicator of water availability, helping to protect farmers from the financial impact of drought-related crop loss.
Unlike traditional insurance products, parametric solutions do not require proof of loss or damage assessment. Instead, if the Water Balance Index dips below a pre-set threshold, automatic payouts are triggered, and farmers receive cash relief directly to their bank accounts, streamlining the process and ensuring transparency.
This product has been developed with the support of a catalytic grant from the Natural Disaster Fund (NDF) via its Technical Assistance Facility. The NDF is a disaster risk financing initiative managed by Global Parametrics, funded by the UK government’s Foreign, Commonwealth and Development Office (FCDO) and Germany’s KfW development bank on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
In partnership with Hannover Re, the NDF helps provide risk capacity for parametric solutions aimed at enhancing climate and natural disaster resilience for vulnerable communities in low- and middle-income countries across the Global South.
After the one-year catalytic grant phase, the NDF will continue to provide risk capacity for a risk transfer transaction, ensuring the product becomes widely available through Frontier Markets’ rural social commerce platform.
“Our partnership with Frontier Markets showcases how parametric solutions deliver reliable financial relief to communities facing pressing climate risks,” added Mark Rueegg, CEO of CelsiusPro Group.
“We are thrilled to see this initiative set the stage for scalable, affordable, and efficient crop insurance solutions across vast regions of India.”
“The Rajasthan and Uttar Pradesh regions are particularly vulnerable to drought, which worsens food insecurity, disrupts livelihoods, and heightens poverty,” said Ajaita Shah, Founder and CEO of Frontier Markets.
“Providing women smallholder farmers with access to this parametric insurance product will give them a vital tool to protect their families and communities from the financial fallout of climate-related shocks.”
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