Global Parametrics has teamed up with weather risk platform, Arbol and Propina, which works to ensure ethically sourced supply chains, to provide coverage to smallholder coffee farmers to help them hedge exposure to rainfall deficits.

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."

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