Fairfirst Insurance in collaboration with Oxfam launched a Weather Index Insurance that commits to protect Sri Lanka’s farming community, specifically the spice farmers. Insurance coverages available in the market at present do not cater to spice farmers, as such this insurance policy by Fairfirst, will be a strong supplement to existing insurance coverages available to Sri Lanka’s farming community.
Farming has been the hallmark of every human civilisation that has endured history and they are a community who are integrally tied to the success of local communities and the economy. However, with unexpected changes in climate patterns, farmers are left facing numerous challenges in farming as well as in their household finances. They say, water is the source of all life, and a shortage or abundance of rainfall can take a huge toll on the survival and development of any crop.
When facing these impacts, the implementation of an effective solution to overcome the challenges farmers face is crucial. As such, Fairfirst Insurance recently paid out claims to 49 farmers where the rainfall exceeded the threshold defined in the policy. The beauty of this new parametric product is that farmers don’t have to intimate claims by filling up lengthy claim forms, as claims are settled through an automated process which is based on rainfall exceeding certain pre-defined trigger points.
Commenting on the Weather Index Insurance, Chief Strategy Officer of Fairfirst Insurance – Sandeep Gopal said,” Insurance is a necessity against the unexpected. Although we cannot foresee the unexpected it is more the reason for us to make insurance relevant for each target market. This is the meaning of true service. And for farmers the unexpected is almost certainly an everyday situation as weather patterns keep changing and has become even more unpredictable. Which is why it is our responsibility to support the farmers of our land by providing them an insurance cover that is relevant, affordable and seamless so that they are able to support the community”.
As the name of the cover – Weather Index Insurance – suggests, it is attributed to excess rainfall or drought to activate the policy. With the support of the Meteorological Department of Sri Lanka and Dialog weather stations in the region, Fairfirst was able to obtain data required to process and settle claims of the spice farmers. However, in the long run it is imperative to expand weather stations in the country to revolutionise weather index-based insurance.
Fairfirst Insurance Limited, is part of the global Fairfax Group. The Group is a leading property and casualty insurer, reinsurer and investment manager, headquartered in Toronto, Canada. Fairfirst is today among the top general insurance companies of Sri Lanka and is recognised as the only Sri Lankan company amongst the 2020 Top Insurers across Asia-Pacific. Fairfirst serves individuals, businesses and institutions across this beautiful island through a versatile workforce spread across the comprehensive branch network, affinity partners and brokers in Sri Lanka.