IRB Brasil RE, in a partnership with the reinsurer SCOR and the companies ESSOR and AgroBrasil, has just launched parametric insurance, unprecedented in Brazil, whose coverage protects large and small livestock farmers from losses caused by adverse weather conditions in pasture. Called “Pastagem Protegida – Índice” [“Protected Pasture – Index”], the product uses a technological platform, with remote sensing via Airbus Defense and Space’s satellite, which allows for monitoring and speeding up the payment of indemnities.
Parametric insurance is new in Brazil. Also known as index insurance, it works based on the definition of parameters for the occurrence of natural events. If the set parametric index is not reached, the coverage of the policy can be claimed. Farmers will be able to use insurance money to buy fodder to feed their livestock, as well as to increase their production per hectare without needing additional land for grazing.
IRB Brasil RE’s executive reinsurance vice-president, Isabel Solano, says that the product modernization, based on market needs, is essential to keep the sector at the forefront: “Digital changes in the agribusiness sector is a reality, but the insurance sector as a whole has not been able to effectively pass on potential earnings to Brazilian farmers. With this new product, we combine cutting-edge technology with deep market know-how to bring an intelligent solution that can meet a local need. It is the type of value all our partners seek and we hope to provide”, says the executive.
Laurent Rousseau, SCOR Global P&C’s deputy CEO, adds: “An essential part of our mission as a reinsurer is to take advantage of the global insurance experience to provide concrete solutions to small or large farms. This type of product will support farmers in their search for more sustainable agricultural practices.”
Laura Neves, AgroBrasil’s CEO, comments: “We are part of this partnership between the global insurance giants with technological support from Airbus, which offers a robust insurance solution tailored to Brazilian livestock. We have kept a strong partnership with Brazilian farmers and brokers for 23 years, making Agro Seguros innovations part of the company’s DNA. Now, we are ready to support Brazilian farmers as well.”
Fabio Pinho, ESSOR’s CEO and SCOR Specialty Insurance’s CEO in Latin America, highlights: “All our efforts aim to bring to Brazil a product whose service, technology and value chain will be fundamental for our customers, whats results in a perceptible added value for them.”
François Lombard, Airbus Defense and Space’s head of intelligence business, comments: “We have been innovating for more than 20 years in order to propose solutions for sustainable agriculture, using our analysis based on satellite support. Our Pasture Production Index, based on a broad history reference, allows us to anticipate losses that could severely impact farmers.”