WTW introduces insurance solution to protect Sri Lankan aqua farm

This is Asia’s first 4-peril parametric insurance.

Willis Towers Watson (WTW) has introduced Asia's first 4-peril parametric insurance, aimed at safeguarding Sri Lanka's shrimp farms against weather-related risks. 

This insurance solution, designed for Taprobane Seafood Group, Sri Lanka's largest seafood company, played a pivotal role in enabling them to obtain a crucial $15m project financing from FMO, the Dutch entrepreneurial development bank.

Shrimp farming in coastal regions entails various risks, especially exposure to weather hazards. 

To address these vulnerabilities and remove potential obstacles to securing capital, WTW devised the region's pioneering 4-peril parametric insurance solution.

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It covers four critical weather risks: earthquakes, typhoons, excess rainfall, and heat stress.

With this innovative insurance in place, Taprobane can proceed with sustainable shrimp farming, creating employment opportunities for vulnerable communities and promoting the growth of aquaculture in Asia. 

This initiative is expected to contribute positively to the region's food security concerns.