CelsiusPro Group, a provider of parametric insurance solutions for climate risks, has partnered with ECOM Agroindustrial Corp Ltd., a soft-commodities services group specialising in coffee, cocoa and cotton, to provide Indonesian farmers exposed to climate and natural catastrophe risks with parametric insurance cover.
The initiative is supported by the University of Southern Queensland (UniSQ) in Australia, a grant from the Natural Disaster Fund’s Technical Assistance Facility, and the Swiss Capacity Building Facility (SCBF).
According to CelsiusPro, the focus of the partnership is to help build climate resilience for coffee farmers in the region, where changing rainfall patterns and other climate-related hazards are having a significant impact on yields and farmer incomes.
The partnership involves the co-design, refinement and distribution of parametric insurance products that implement a “Consumer Pay” approach and a strong capacity-building component to train and engage local stakeholders, including farmers, agronomists and agribusinesses, about insurance solutions and climate risk management.
“Leveraging ECOM’s coffee supply chain, a ‘Consumer Pay’ approach means the costs associated with climate insurance, such as insurance premiums and administrative fees, are distributed to those consumers who purchase coffee sourced from certified, climate-insured farms,” CelsiusPro explained.
These products will reportedly build on coffee certifications already in the market to help strengthen the resilience of the coffee supply chain, with minimal additional contributions per consumer.
Mark Rueegg, Chief Executive of CelsiusPro Group, commented, “Our partnership with ECOM will help Indonesian farmers manage their climate risks and income volatility.
“The region is seeing increased frequency and severity of climate-related events, which makes accessible and affordable insurance products all the more important.”
Sitara Merchant-Carter, CEO of SCBF, said, “The project illustrates how innovative partnerships can deliver climate-smart insurance solutions with the potential to scale sustainably. This initiative turns climate risk into inclusive insurance solutions that build real resilience for underserved communities.”
Laurent Bossolasco, Sustainability Manager at ECOM, noted, “We are delighted to be working with CelsiusPro Group on this project. The parametric insurance products we are designing, alongside the wider educational support, are integral in fully strengthening Indonesian farmers’ climate awareness and financial resilience. These actions really will make a difference in the long-term.”
