INDEX BASED AGRICULTURE INSURANCE
Synterra Oases Capital Assets present our new risk solution for Nigerian agriculture and crop farmers. We are delighted to be able to introduce, Our index based insurance product. Agriculture is a massive component of the Nigerian economy and has become the focus of the government drive for diversification of the economy.Nigeria has over 5 million active farmers, the vast majority smallholder crop farmers. Yet most of them operate without any form of insurance and as a result, are unable to access loans that would boost productivity and foster food security.
Parametric insurance is based on the threats to crop farming. It uses the weather indices such as rainfall, soil moisture, and temperature. These objective parameters are used to create highly accurate crop yield models. These models are currently working in other locations with a very high degree of success.Because our solutions employ objective indices to trigger a claim, the technology we use to establish loss assessment, allows us to expedite near instant pay-outs to policy holders.
The many benefits of Index based insurance are perfect for Nigerian farmers, it will transform food production in the country and achieve rapid food security. Index Based Insurance, specifically devised for the Nigerian market is a game changer and will revolutionise the way agriculture is funded in Nigeria.
AXA Climate, the parametric specialist risk transfer unit of global insurance and reinsurance company AXA, has partnered with our partners SatSure AG, a provider of decision intelligence solutions using satellite data, to roll-out parametric risk transfer solutions around the globe.
AXA Climate will underwrite the parametric risks on an insurance and reinsurance or derivative and swap basis, while SatSure will leverage its machine learning and big data technologies to bring rich risk assessment and analytics to support these parametric risk transfer solutions. This will allow us to deliver the full range of index based insurance solutions to Nigerian farmers.
SatSure will provide a detailed risk assessment using SPARTA, its intelligence platform driven by satellite data and analytics, while AXA Climate will underwrite and price climate-related risks for farmers and clients operating across the agriculture and critical infrastructure sectors.