Global Parametrics, a CelsiusPro Group company, has partnered with Frontier Markets, a rural social commerce platform, to provide women smallholder farmers in India with affordable crop insurance. The programme initially covers 5,000 farmers and benefits an estimated 24,000 individuals in its first year.
A media statement said 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.
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Unlike traditional risk transfer products, parametric solutions eliminate the need for proof of loss or damage assessment, it said. 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.
Diaster risk financing
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, it said.
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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.
Quoting Mark Rueegg, CEO of CelsiusPro Group, the statement said: “Our partnership with Frontier Markets showcases how parametric solutions deliver reliable financial relief to communities facing pressing climate risks. We are thrilled to see this initiative set the stage for scalable, affordable, and efficient crop insurance solutions across vast regions of India.”
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Ajaita Shah, Founder and CEO of Frontier Markets, said Rajasthan and Uttar Pradesh regions are particularly vulnerable to drought, which worsens food insecurity, disrupts livelihoods, and heightens poverty. “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,” Shah said.
