Weather insurance is an insurance policy which protects losses to farmers due to the vagaries and the unpredictability of weather. It is an alternative to traditional crop insurance.
Weather patterns are studied by using sophisticated weather sensing stations and the historic data collected by the metrological departments. After analysis of this data, mathematical models are constructed along with other geological and agricultural data to determine productivity and yields. If the actual yields are less than the forecasted models, claims are paid out to the farmers.
Often these programs are run by the support of Governments or Government departments.
Besides, being able to handle the Re-insurance placement part of this product, we offer “cradle to grave” consultancy to build and manage these models. This includes training the underwriters, claims personnel and where necessary procuring weather stations to implement the product.