IFC, MAIPARK to Develop Index-Based Insurance Schemes to Mitigate Weather Risks for Local Farmers
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The International Finance Corporation (IFC) and specialist reinsurance company Reasuransi MAIPARK Indonesia have agreed to develop insurance products to help local farmers mitigate weather-related risks, Jakarta Globe reports. The agreement will establish insurance schemes that pay out benefits to farmers if a weather event exceeds levels in a predetermined index — which will measure rainfall levels, temperatures, wind speeds and crop yields, expected to provide cheaper and less complicated insurance benefits to farmers in the event of a natural disaster.
"The region's changing climate has made agricultural insurance essential to protect local businesses and strengthen industries so they become resilient to new weather patterns," IFC country manager for Indonesia and Malaysia Azam Khan said recently.