Crop yield index parametric insurance
Pays out when the average yield of a crop across a region falls below its historical benchmark, with no field-by-field loss assessment.
Index, trigger and payout
Payout
How the cover works
What is measured, and when it pays.
- Risk covered
- Decline in average crop yield for a defined crop/region below a pre-agreed historical benchmark.
- Parametric trigger
- Area yield (t/ha) vs. multi-year Olympic-average reference.
- Payout
- Predefined payout compensating the loss, sized on an 11-tier trigger scale.
- Index resolution
- Administrative zone, seasonal
- Data and model
- Normal distribution — standardized yield-anomaly convention (index-insurance literature, e.g. World Bank ARC).
- Typically for
- Farms, cooperatives & agri-lenders
Agriculture family
Other agriculture covers.
Next step
Test the trigger on your own location.
We back-test the index at your site over its full history and come back with indicative terms, before anything is bound.