Protection gap for agribusiness with soil moisture parametric insurance
AXA Climate and VanderSat entered a strategic partnership to offer a satellite data-driven parametric cover against drought-related losses. The parametric insurance product features policies that will pay out based on high-precision microwave technology measuring soil moisture in individual field zones.
Soil Moisture is a direct indicator of water available for the plant hence being closely linked to yield volatility. Contrary to conventional insurance policies that rely on loss adjustment in the field, AXA Climate uses VanderSat’s satellite monitoring to trigger swift payouts as soon as the index is above or below a certain level. This means no costly farm visits to assess the losses and payouts can quickly reach impacted clients. AXA Climate’s innovative risk management solution is available worldwide for actors of the agribusiness supply chain: input suppliers, processors and cooperatives.
Watch a recorded webinar on the subject here: