Tropical cyclone damage protection for farmers
20 September, 2023, 6:15 pm
The newly launched anticipatory action insurance product to protect farmers from tropical cyclone damage pays out up to 20 per cent of the sum insured 72 to 48 hours before the forecasted event.
The product, launched by Sun Insurance with the support of the United Nations Capital Development Fund and the United Nations Office for Disaster Risk Reduction, is being offered to and currently piloted with farming co-operatives.
Acting as the aggregators of the scheme on behalf of their members, the co-operatives may get a maximum coverage of $50,000 at a premium of $5000.
The anticipatory payout prior to the cyclone is calculated based on the forecasted maximum wind speeds and minimum pressure within 115 kilometers of the insured location.
A secondary payout after the occurrence of the natural disaster is similarly calculated based on recorded data and may be issued to farmers within a higher event severity area.
Event data will be sourced from the Global Forecast System and the Joint Typhoon Warning Centre.
The product was launched on September 19, 2023, at the Sun Insurance office in Suva.