Vietnam Launches First-of-its-Kind Insurance Program Intended To Safeguard Coffee Farmers Livelihoods Amid Climate Volatility – CoffeeTalk

Willis and Global Parametrics have launched the first-ever pay-out of an innovative parametric policy for coffee farmers in Vietnam, who suffered losses due to low rainfall during the 2024 coffee growing season. The policy uses satellite data to measure rainfall levels in the country’s coffee-growing regions. If rainfall dips below predefined values, the insurance is triggered, and farmers receive timely payouts without the need for lengthy claims processes or on-the-ground assessments. Risk capacity to support the payouts was provided by the Natural Disaster Fund (NDF), a public-private partnership managed by Global Parametrics. The NDF is funded by the UK government’s Foreign, Commonwealth and Development Office and Germany’s development bank KfW. The Coffee Climate Protection Insurance programme was developed by Willis and Global Parametrics as part of the wider “De-Risk South-East Asia” initiative in partnership with ECOM Agroindustrial Corp. Ltd, Bao Minh Insurance Corporation, and the University of Southern Queensland in Australia. Vietnam is the world’s second-largest coffee producer, and coffee production is highly sensitive to weather conditions, especially rainfall and temperature. This risk transfer solution provides a safety net for these farmers, ensuring they can continue their operations even in times of drought.

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