SafeTree launches Parametric Insurance for Apple Crop Protection

A novel parametric crop insurance plan, which bases compensation on preset criteria rather than actual losses, was just introduced by SafeTree for apple growers in J&K and Himachal Pradesh. By offering a faster and more transparent claims process, parametric insurance helps farmers better manage risks.

Unpredictable weather patterns and climate change are causing financial losses for apple growers in J&K and Himachal Pradesh. Additionally, these farmers have little tools for mitigating risk because they don’t trust insurance.

In order to address these issues, the SafeTree team and parametric specialists began developing a parametric insurance solution by analysing the last 40 years’ worth of climate-related data and the availability of trustworthy, up-to-date sources.

 

The following are some of the main characteristics of this parametric crop insurance product:

1. Index-Based Triggers: Total rainfall during the growing season and temperature thresholds are important growth phases for apple harvests. Payouts are triggered by this product based on predefined meteorological data (temperature, rainfall).

2. Transparent Payouts: Payments are automatically deposited into farmers’ bank accounts when certain triggers are met, and a real-time back-end assessment of weather-based data is conducted for the covered regions. Parametric insurance provides transparency by removing the need for laborious claims investigations and basing payouts on objective facts rather than subjective evaluations of individual losses. Farmers can quickly recover from unfavourable occurrences since this guarantees a quicker compensation disbursement.

3. Financial Stability: By obtaining prompt rewards in the event of unfavourable weather conditions, apple growers can increase their financial stability with parametric insurance. This protects their means of subsistence as well as investments in orchard inputs and infrastructure.

Lastly, parametric insurance offers farmers a dependable safety net, which enhances the agricultural sector’s overall resilience.

For farmers looking for efficient risk management techniques, parametric insurance offers a viable alternative, according to Mr Vikas Anand, Co-Founder & CEO of SafeTree. It improves financial stability and resilience in the face of erratic and growing weather patterns and hazards by providing transparent, quick rewards based on preset triggers.

According to Mr. Bawa Mohit Singh, Head of Marketing and Customer Communications, parametric insurance is a useful tool to protect apple crop yields and livelihoods as the agricultural sector develops further.

For more information about our services and products, please visit www.safetree.in.