Global Parametrics and Willis deliver new parametric solution to coffee farmers in Vietnam
Parametric risk transfer solution backed by the Natural Disaster Fund provides timely relief to coffee growers affected by drought in Vietnam.
LONDON, February 17, 2025 — Global Parametrics, a CelsiusPro Group company, and Willis, a WTW business, announce the first ever payout of an innovative parametric policy distributed to coffee farmers in Vietnam who suffered losses due to low rainfall during the 2024 coffee growing season.
In early 2024, Willis placed the parametric solution with Bao Minh Insurance Corporation in Vietnam, protecting coffee farmers’ revenue against a lack of yield due to low rainfall during the critical flowering period. The solution uses satellite data to measure rainfall levels in the country’s coffee-growing regions. If the rainfall dips below predefined values, the insurance is triggered and the farmers receive timely payouts without the need for lengthy claims processes or on-the-ground assessments.
Risk capacity to support the payouts was provided by the Natural Disaster Fund (NDF), a public-private partnership managed by Global Parametrics. The NDF is funded by the UK government’s Foreign, Commonwealth and Development Office and Germany’s development bank KfW.
Angus Kirk, Chief Executive of Global Parametrics, said: “We are delighted that the parametric cover has effectively protected coffee farmers in Vietnam. Many of these farmers operate on a small scale with limited financial resources, which constrains their ability to cope with the impact of deviations in rainfall and temperature patterns on their crops. We look forward to continuing our work with our partners in Vietnam.”
Laurent Bossolasco, Sustainability Manager at ECOM Agroindustrial Corp. Ltd, one of the world’s largest family-owned coffee merchants, said: “It is vital for the survival of our coffee industry that the weather, market and agricultural risks borne by farmers are shared by market participants. Changing rainfall patterns, droughts and higher temperatures are part of the farming equation and parametric insurance can be a meaningful tool for coffee producers to adapt to climate change.”
The Coffee Climate Protection Insurance (CCPI) programme was developed by Willis and Global Parametrics as part of the wider “De-Risk South-East Asia” initiative in partnership with ECOM Agroindustrial Corp. Ltd, Bao Minh Insurance Corporation and the University of Southern Queensland (UniSQ) in Australia.
Claire Wilkinson, Managing Director, Alternative Risk Transfer Solutions at Willis, said: “This programme supports the resilience of coffee farmers in Vietnam against the impacts of an increasingly volatile climate, giving them much-needed financial support and allowing them to recover quickly when adverse weather threatens their livelihoods.”
Vietnam is the world’s second largest coffee producer, with coffee playing an important role in the country’s export economy. However, coffee production is highly sensitive to weather conditions, especially rainfall and temperature. This risk transfer solution provides a safety net for these farmers, ensuring that they can continue their operations even in times of drought.
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Media contact:
Daniel Perez-Whitaker
Head of Marketing & Communications
daniel.perezwhitaker@celsiuspro.com
Global Parametrics, a company of the CelsiusPro Group, focuses on developing parametric risk transfer solutions that create a positive impact for vulnerable communities in countries prone to extreme weather and natural catastrophe risks. The company mobilizes risk capacity to underwrite parametric risk transfer through dedicated structures, which are backed by reinsurers with AA-ratings. The Global Parametrics team manages the Natural Disaster Fund (NDF), a public-private partnership with capital committed by the UK government's Foreign, Commonwealth and Development Office, and Germany's development bank KfW on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). globalparametrics.com/
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