The Agricultural Insurance Association of Kazakhstan, Swiss Re and VanderSat have jointly developed an advanced agricultural drought insurance product for farmers in Kazakhstan. Unlike traditional crop insurance where insurance payout is based on loss adjustment in the field, this index insurance product pays out in the event of the soil moisture deficit reaching a pre-defined level.
SwissRe wants to provide reliable, transparent and accurate agricultural drought insurance to clients around the world. Insurance of this kind relies on an index as a proxy for agricultural losses, one that farmers can easily understand.
Since June 2020, the new soil moisture index insurance product has been operational in over ten countries and is set to expand into new geographies.