Willis triggers payouts for Vietnam coffee farmers

The policy covered yield losses from excessive rainfall during the main harvesting period.

Willis, part of WTW, and Global Parametrics have confirmed that payouts from a parametric insurance policy have been made to coffee farmers in Vietnam’s Central Highlands after heavy rainfall during the 2025 to 2026 growing season caused crop losses.

The payouts followed the activation of a high-rainfall policy with Bao Minh Insurance Corporation in late 2025. 

The cover was designed to protect coffee farmers’ income from yield losses caused by excessive rainfall during the main harvesting period. It uses satellite rainfall data from NASA to monitor conditions across three areas in Gia Lai province: West Ia Grai, East Ia Grai 

and North Chu Prong. 

When rainfall exceeds predefined thresholds, the policy is automatically triggered, allowing payouts to be made without traditional claims assessments.

The latest payouts came shortly after a separate parametric drought policy, also arranged by Willis in 2024, was triggered for the same farming region. 

The rainfall policy was activated during Typhoon Kalmaegi, which brought severe flooding to parts of the Central Highlands. 

Rainfall in some areas exceeded 1.7 metres, with Gia Lai among the worst-affected regions. Coffee farms were flooded in several locations, leading to significant reductions in yield.

Willis said the structure is intended to provide faster financial support to farmers affected by extreme weather. 

The parametric model allows payments to be made based on measured weather data rather than on-site loss assessments.