Farmers Edge and Munich Re Announce Strategic Partnership to Implement Large-Scale Parametric Weather Insurance Solutions
Premium solutions leverage intelligent technologies to address data gaps in traditional coverage, establishing a new, profound level of revenue protection
Winnipeg, MB (Sept. 16, 2020) – Farmers Edge™, a global leader in digital agriculture, today announced a strategic collaboration with Munich Re, a leading reinsurer, to pave the way for data-driven parametric weather insurance solutions. The trailblazing deal centers on a unique digital infrastructure that combines highly precise, site-specific datasets with science-based analytics and Artificial Intelligence to transform traditional parametric coverage models into scalable and profitable solutions for all stakeholders; growers gain top quality crop protection and instant payouts while insurers gain key insights and tools to more confidently mitigate risk, automate claims, and provide faster payouts to customers.
Agricultural parametric insurance covers areas that are excluded from all-risks indemnity policies, such as excess moisture or heat, to protect growers against unpreventable high-intensity and catastrophic losses. These policies are designed to offer claim payouts as soon as events are triggered, eliminating the typical loss adjustment and reporting period. However, these parametric weather policies may carry significant risk across data-sparse regions due to insufficient publicly available data.
The collaboration puts Farmers Edge and Munich Re at the forefront of insurance innovation, combating risks associated with parametric coverage while also establishing business resiliency amid the COVID-19 pandemic. Farmers Edge risk management platform—FarmCommand®—provides a powerful avenue to securely automate all data transactions between growers and insurers, resulting in lower administrative costs and improved scalability. The platform delivers hyper-local, high-density insights, fueled by AI and robust datasets, such as daily satellite imagery and site-specific weather conditions, to detect claims and trigger instant payouts. Its Smart Claim™ and Smart Reporting™ tools power automated record-keeping, claim predictions and notifications, claim adjustments, crop classifications, and fraud detection. One crucial piece are the Farmers Edge weather stations installed directly on the farm. This acute level of precision, combined with Munich Re’s vast reinsurance expertise, provides growers with secure protection that mirrors the impact of weather events as they occur on their fields. While traditional claims can take months, these new, parametric solutions are designed to be completely automated by data and InsurTech features. FarmCommand houses and analyzes all data to detect and trigger claims automatically, creating more utility, security, and transparency for all stakeholders.
“As a farmer myself, it was paramount for us to provide a solution to help growers across data-sparse regions access more protection,” says Wade Barnes, Farmers Edge CEO and co-founder. “By working together, we’re able to bring the highest degree of accuracy available and couple it with intuitive tools to deliver instant payouts and superior risk management solutions that support global sustainability. This collaboration completes the missing piece of the longstanding parametric puzzle—controlling risk with better data—and gives insurers a clearly defined competitive advantage to attract new customers and enrich existing relationships.”
“Protecting agribusinesses against risks arising in agricultural production has been a longstanding tradition within Munich Re. Our aim is to improve the access to required coverages by extending the boundaries of insurability,” says Rainer Hartmann, Head of AgRisk Partners in Munich Re. “The collaboration with Farmers Edge brings an important piece to the table. The performant accessibility to accurate data allows the design of individual coverages on a parametric basis addressing the specific risks and helping commercial operations to manage their exposures.”
About Munich Re
Munich Re is one of the world’s leading providers of reinsurance, primary insurance, and insurance-related risk solutions. The Group consists of the reinsurance and ERGO business segments, as well as the asset manager MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake to the 2019 Pacific typhoon season. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies, cyber attacks or pandemics. The Group is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the world’s most sought-after risk partners for businesses, institutions, and private individuals. For more information, visit www.munichre.com.
About Farmers Edge
Farmers Edge is a global leader in digital agriculture delivering cutting-edge solutions powered by a unique combination of field-centric data, artificial intelligence, and complete integration. Since 2005, Farmers Edge has transformed the industry with disruptive technologies and strategic partnerships designed to enhance connectivity across the entire agricultural ecosystem. With the most comprehensive data management platform on the market–FarmCommand®–Farmers Edge is revolutionizing the way farmers, agricultural professionals, and agri-businesses interact with data. Moving at the speed of digital, with an elite team focused on innovation, machine learning, and IoT, Farmers Edge is creating new opportunities for all stakeholders, shaping the future of agriculture worldwide. To learn more about Farmers Edge, visit FarmersEdge.ca.
Source: Farmers Edge via Sift Communications
Tags: Farmers Edge, Munich Re, Natural Catastrophes, parametric insurance, partnership, severe weather, storm surge damage
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