Meteo Protect is to provide parametric weather re/insurance for the second year running to 22,000 olive farmers in Spain following record-breaking temperatures during the summer of 2017.
The Agricultural Association of Young Farmers (Asaja), which is the largest professional agricultural association in Spain, will provide the insurance, which protects olive fields against the financial consequences of extreme temperatures, through Lloyd’s Coverholder Meteo Protect.
Asaja members can access a dedicated weather re/insurance platform that provides customised parametric weather insurance, which is managed by Meteo Protect and is designed to increase resiliency against climate-related risks.
The platform can provide information on risks like the financial consequence of heat stroke on olives during the spring flowering period, and farmers can customise policy specifications in terms of geolocation, crop, coverage period, and weather parameters.
Last year, Spain experienced five severe heatwaves over the summer months, and farmers in the region are bracing themselves for further record temperatures in 2018.
Spain produces 56% of the world’s olive oil, and olive trees are particularly susceptible to extreme weather conditions, as thermal and water stress can reduce the quality and size of harvests.
Gabriel Gross, Chief Executive Officer (CEO) of Meteo Protect, said: “We are seeing an increased demand from Spain’s olive growers for weather insurance following last year’s heatwaves in the region. Last year, thermal stress led to significant early loss of fruit, for which all insured farmers who suffered losses were compensated.
“Thanks to our partnership with Asaja, we are increasing the number of olive farmers who are covered this year, and in fact extending our coverage to other crops for them.”
Luis Carlos Valero, spokesperson for Asaja, added: “In 2017, record temperatures were reached in Spain on several occasions throughout May and June, in addition to severe drought being experienced at the end of the summer.
“Thanks to our partnership with Meteo Protect, in 2017, cooperative’s membership who subscribed to parametric insurance for the April through June period and suffered losses had already received compensation by as early as July. Clearly, parametric weather insurance is vital to better protect the livelihoods of our farmers.”
Meteo Protect’s weather re/insurance is available for all kinds of crops in any region, and its parametric design means indemnification is simple and automatic, requiring no field loss assessment, deductible or adjustment.