SafeTree launches Parametric Insurance for Apple Crop Protection

SafeTree has recently launched a unique parametric crop insurance for apple farmers in J&K and Himachal Pradesh which provides coverage based on predetermined parameters rather than actual losses. By providing, parametric insurance offers farmers a quicker and more transparent claims process, enabling farmers to manage risks effectively.

The apple farmers in J&K and Himachal Pradesh are suffering financial losses due to to climate changes and unpredictable weather patterns. Further, due to lack of trust in insurance, there are limited risk mitigation instruments for these farmers.

To mitigate these challenges, SafeTree team along with parametric experts, started work on the modelling for a parametric insurance solution by evaluating historical climate related data for last 40 years and availability of reliable & real time source.

Key features of this Parametric Crop Insurance product are as follows:

1.??? Index-Based Triggers: For apple crops, temperature thresholds play critical growth stages and so are cumulative rainfall over the growing season. This product relies on predetermined weather data (temperature, rainfall) to trigger payouts.

2.??? Transparent Payouts: A back-end review of weather-based data is undertaken on a real time basis for the covered geographies and payments are automatically triggered into the bank accounts of the farmers on the happening of defined triggers. Since payouts are based on objective data rather than individual loss assessments, parametric insurance offers transparency and eliminates the need for time-consuming claims investigations. This ensures faster payout disbursement, allowing farmers to recover swiftly from adverse events.

3.??? Financial Stability: With parametric insurance, apple farmers gain greater financial stability by receiving payouts quickly in the event of adverse weather conditions. This helps to safeguard their livelihoods and protect investments in orchard infrastructure and inputs.

Finally Parametric insurance contributes to the overall resilience of the agricultural sector by providing a reliable safety net for farmers.

As per Mr. Vikas Anand, Co-Founder & CEO - SafeTree, parametric insurance presents a promising solution for farmers seeking effective risk management strategies. By offering transparent, rapid payouts based on predetermined triggers, it enhances financial security and resilience in the face of unpredictable and increasing weather patterns and perils.

As the agricultural industry continues to evolve, parametric insurance emerges as a valuable tool to safeguard apple crop yields and livelihoods, as per the assessment of of Mr. Bawa Mohit Singh, Head - Marketing and Customer Communications.

Do visit www.safetree.in to know more about our products and service offerings.