Parametrics deal to support ethical supply chains

Global Parametrics has teamed up with weather risk platform, Arbol and Propina, a non-profit which works to ensure ethically sourced supply chains, to provide coverage to smallholder coffee farmers to help farmers hedge exposure to rainfall deficits and invest in resilience measures.

The Natural Disaster Fund, a risk transfer vehicle managed by the Global Parametrics team, will provide risk capacity for the transaction.

Dan Bierenbaum, vice-president of Global Parametrics, said: “Extreme weather and natural disasters are a key cause of an endemic poverty cycle in many emerging markets and with the onset of climate change, the situation can only get worse. GP, through The Natural Disaster Fund and its commercial partnerships, is proud to champion a systemic change by providing both the innovative products and access to risk capital to organisations, such as Propina, that directly impact the lives of those on the ground."

Crawford Hawkins, founder of Propina, added: “Agricultural producers in many emerging markets have limited access to traditional insurance products, which can be costly and inefficient. Our experience has shown that innovative parametric concepts with fast claims payment processes are most effective when it comes to mitigating the impact of extreme weather events and natural disasters that are particularly devastating in low-and-middle income countries."

It is hoped that the pilot deal will form the basis for further such partnerships.

    Share Story:

Recent Stories

Your people and the pandemic: Are you doing enough?
Employee health, well-being and security have always been a vital part of risk management, and as organisations seek ways to ensure a smooth, successful and sustainable return to operations amid the evolving environment, careful consideration has to be given to all these areas, and quickly. Published August 2020

Responding to COVID-19: A safe and secure return to work
Learn more from the experts that worked on the recovery of the Diamond Princess. Published July 2020