Vegetation index (NDVI) parametric insurance
Pays out when satellite-measured vegetation greenness stays below its seasonal norm, a direct read on pasture and crop condition.
Index, trigger and payout
Payout
How the cover works
What is measured, and when it pays.
- Risk covered
- Sustained decline in vegetation greenness/vigor below the historical seasonal norm.
- Parametric trigger
- NDVI composite vs. multi-year historical distribution.
- Payout
- Predefined payout compensating the loss, sized on an 11-tier trigger scale.
- Index resolution
- Grid cell, seasonal
- Data and model
- Normal distribution — standardized NDVI/VCI anomaly convention.
- 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.