Willis, a WTW business, and Global Parametrics, a parametric risk transfer provider part of CelsiusPro, have revealed that payouts of an “innovative” parametric policy have been distributed to coffee farmers in the Central Highlands of Vietnam who suffered losses due to high rainfall during the 2025/26 coffee growing season.
Willis explained that in late 2025, it placed the high rainfall parametric solution with Bao Minh Insurance Corporation in Vietnam, protecting coffee farmers’ revenue against a loss of yield due to excessive rainfall during the “golden” harvesting period.
“The solution uses satellite data from NASA to measure rainfall levels in three areas of the Gia Lai province – West Ia Grai, East Ia Grai and North Chu Prong. If the rainfall exceeds predefined values, the insurance is triggered, and the farmers receive timely payouts without the need for lengthy claims processes or on-the-ground assessments,” Willis explained.
Risk capacity supporting the payouts was reportedly provided by the Natural Disaster Fund (NDF), a public–private partnership managed by Global Parametrics and funded by the UK Foreign, Commonwealth and Development Office and Germany’s development bank KfW.
Willis noted that the 2025/26 policy coincided with Typhoon Kalmaegi, which caused some of the worst flooding of modern times in the Central Highlands of Vietnam.
According to the firm, rainfall exceeded 1.7 metres in parts of Vietnam’s central highlands, with Gia Lai Province among the worst-affected areas.
Some coffee farms were reportedly completely submerged, leading to a significant reduction in yields.
Nathan Pereira, Analyst, Alternative Risk Transfer Solutions at Willis, commented, “This programme delivers tailored and timely financial protection to vulnerable coffee farmers, while strengthening trust in insurance and improving understanding of how effective risk solutions can support their livelihoods.”
Mark Rueegg, Chief Executive at CelsiusPro Group, said, “Delivering rapid, reliable payouts after extreme weather events is exactly what parametric solutions are designed to do.
“This programme demonstrates how innovative risk transfer, backed by strong public-private partnerships, can provide meaningful financial resilience to vulnerable farming communities.
“By combining advanced data with local expertise, we are helping to close protection gaps and support more sustainable agricultural livelihoods in the face of increasing climate volatility.”
These payouts come shortly after funds were triggered under a separate parametric drought policy structured and placed by Willis in 2024, also for the benefit of Vietnamese coffee growers.
The new high rainfall policy aims to build on this success by expanding the scope of parametric protection available to farmers.
It forms part of an initiative supported by the InsuResilience Solutions Fund (ISF) and delivered in partnership with Willis, ECOM Agroindustrial Corp. Ltd, Bao Minh Insurance Corporation, the International Center for Tropical Agriculture (CIAT) in Vietnam, and the University of Southern Queensland (UniSQ) in Australia.
Nguyen Thi Mai, Sustainability Project Assistant at ECOM Agroindustrial Corp. Ltd, added, “This payout underscores the value of innovative risk solutions in agriculture, demonstrating how such initiatives can translate into real support for farmers facing extreme weather.
“Through close collaboration with partners, it reflects a shared effort to help farmers manage climate risks while contributing to a more resilient and sustainable supply chain.”
