Global Parametrics Partners with Frontier Markets to Bring Crop insurance to Women Smallholder Farmers in India 

Global Parametrics develops a parametric drought insurance product based on its Water  Balance Index solution. The index measures the balance between rainfall and evaporation over  a specific period, providing a measure of the availability of water and enabling the protection of  farmers against the financial strain of losing their crop due to drought.

Global Parametrics Partners with Frontier Markets to Bring Crop insurance to Women Smallholder Farmers in India 

Global Parametrics, a CelsiusPro Group company, is  partnering with Frontier Markets, India’s leading rural social commerce platform, to provide  women smallholder farmers in India with affordable crop insurance. The program initially  covers 5,000 farmers and benefits an estimated 24,000 individuals in its first year. 

Global Parametrics develops a parametric drought insurance product based on its Water  Balance Index solution. The index measures the balance between rainfall and evaporation over  a specific period, providing a measure of the availability of water and enabling the protection of  farmers against the financial strain of losing their crop due to drought. 

Unlike traditional risk transfer products, parametric solutions eliminate the need for proof of  loss or damage assessment. Instead, if the Water Balance Index falls below a pre-agreed threshold, payouts are triggered and beneficiaries receive cash relief directly in their bank  accounts, ensuring a swift and transparent process. 

The product is developed with a catalytic grant provided by the Natural Disaster Fund (NDF)  through its Technical Assistance Facility. The NDF is a disaster risk financing vehicle managed  by Global Parametrics and funded by the UK government’s Foreign, Commonwealth and  Development Office and by Germany’s development bank KfW on behalf of the German Federal  Ministry for Economic Cooperation and Development (BMZ). The NDF shares risks with  Hannover Re to provide risk capacity for parametric solutions that foster climate and NatCat  resilience for poor and vulnerable communities in low-and-middle-income countries across the  Global South. 

Following the one-year catalytic grant phase, the NDF is set to provide risk capacity for a risk  transfer transaction to make the product readily available through Frontier Market’s rural social  commerce platform.

 

“Our partnership with Frontier Markets showcases how parametric solutions deliver reliable  financial relief to communities facing pressing climate risks,” said 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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