Asia’s First Four-Peril Parametric Insurance Launched to Protect Sri Lanka’s Shrimp Farming

by Fishery News

Insurance firm WTW has introduced Asia’s inaugural four-peril parametric insurance solution, aimed at shielding Sri Lanka’s shrimp industry from weather-related risks. Developed for the Taprobane Seafood Group, the parametric solution secured $15 million in project financing from the Netherlands-based entrepreneurial development bank, FMO.

WTW’s innovative insurance solution covers four critical weather risks: earthquakes, typhoons, excess rainfall, and heat stress, providing protection for Taprobane, Sri Lanka’s largest seafood company. The insurance initiative enables Taprobane to secure a loan for sustainable shrimp farming development, supporting local communities.

WTW’s global head of alternative risk transfer solutions, Marc Paasch, emphasized the importance of innovative insurance tools to safeguard businesses in the food industry against the increasing risks posed by natural catastrophes. The four-peril parametric insurance offers a streamlined and efficient solution for businesses vulnerable to multiple weather events not covered by traditional insurance products.

The FMO funding will also assist Taprobane in rehabilitating abandoned farms and investing in new facilities, enhancing its contribution to sustainable seafood farming.

WTW’s Asia head of alternative risk transfer solutions, Richard Zhang, highlighted the insurer’s role in supporting companies like Taprobane through innovative risk analytics and bespoke parametric solutions. The initiative aims to promote sustainable aquaculture growth and address the challenges posed by climate change in the region.

 

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