Igloo extends Weather Index Insurance to Vietnamese coffee farmers

The insurtech targets to cover Southeast Asia’s multi-billion dollar coffee industry.

Launched in November 2022, Igloo Insure’s Weather Index Insurance is now available to coffee farmers in Vietnam enabling them faster payouts in case of unexpected losses.

Igloo collects and monitors rainfall data to calculate claims using pre-assigned values for losses due to natural causes. The Weather Index Insurance will also eliminate the need to individually verify claims thereby reducing transaction costs and enabling faster payouts to farmers. The business rules governing claims payout are hosted on a public blockchain.

Following the success of the insurance for rice farmers, the service’s extension in Vietnam is now available to farmers in five central highlands provinces. Namely, the province of Kon Tum, Gia Lai, Dak Lak, Dak Nong, and Lam Dong.

“With a minimum coverage area of 0.1 hectare, the product brings essential protection against irregular rainfall distribution to even small-scale farmers. The insurance is distributed via Igloo’s agriculture partners and its intermediary services platform Ignite,” Igloo said.

The blockchain-based parametric index is also in partnership with PVI Insurance, Vietnam Meteorological and Hydrological Administration (VNMHA), Saigon Hanoi Insurance Corporation (BSH), and international reinsurer SCOR.