Ag Guard and Riskwolf partner to offer Parametric Insurance to Farmers in Australia and NZ

The Challenge

Farmers in Australia and New Zealand are increasingly exposed to significant financial risks due to unpredictable weather events. These include:

• Excess Rainfall: Heavy rains can damage crops, delay harvesting, and disrupt farming operations, leading to substantial economic losses.
• Drought Conditions: Prolonged periods without rainfall can devastate crops and livestock, threatening the livelihood of farmers.
• Extreme Temperature Fluctuations: Sudden changes in temperature can affect crop yields and animal health, impacting overall productivity.
• Other Regional Weather Perils: The unique climate of the region presents additional challenges that require specialized insurance solutions.

Traditional insurance products often involve lengthy claims processes that leave farmers waiting for compensation when they most urgently need financial support to recover and replant.

The Solution

Ag Guard, in collaboration with Riskwolf, is pioneering a comprehensive weather protection program utilizing parametric insurance technology. This innovative approach automatically triggers payouts based on predetermined weather conditions, bypassing the need for traditional loss assessment processes. This ensures that farmers receive timely financial support, enabling them to manage risks more effectively.

"We highly appreciate the fast and diligent service provided by the Riskwolf team - bringing the right mix of actuarial, data and technology skills to the table."

- Alex Cohn , Managing Director Ag Guard

Key Technology Components

• Advanced Weather Data Integration: By leveraging local radar data from the Australian Bureau of Meteorology (BOM) and global meteorological data from the European ECMWF weather data provider (ERA5), Ag Guard ensures accurate and reliable weather monitoring.
• Real-Time Monitoring: The system’s real-time capabilities facilitate immediate claims processing, providing farmers with rapid access to funds when they need it most.

Customized Product Design

• Precision Calibration: The Riskwolf platform enables precise calibration of weather triggers, ensuring that insurance products are finely tuned to address specific regional risks and farming operations.
• Tailored Solutions: Products are crafted to meet the unique needs of farmers, offering protection against multiple weather perils.
• Flexible Coverage Options: Farmers can select coverage that best suits their operational needs, ensuring comprehensive protection.

Seamless Integration

• Integrated Systems: Fully integrated parametric coverages within existing quotation systems streamline the insurance process, making it easier for farmers to access and manage their policies.
• Efficient Administration: A streamlined policy administration process reduces overhead and speeds up service delivery.
• Automated Claims: Automated claims monitoring and processing ensure that payouts are prompt and accurate, minimizing downtime for farmers.

Results and Benefits

For Farmers:

• Rapid Financial Recovery: Quick access to funds enables farmers to respond immediately to weather-related damage, minimizing financial disruptions.
• Predictable Protection: Clear trigger conditions provide transparency and certainty, allowing farmers to plan with confidence.
• Bottom-Line Protection: Coverage helps maintain financial stability during adverse weather events, safeguarding farmers’ livelihoods.
• Seasonal Flexibility: Payout schedules aligned with seasonal farming cycles ensure that farmers receive support when they need it most.

For Ag Guard:

• Enhanced Product Portfolio: Expanded insurance offerings with innovative parametric solutions.
• Competitive Differentiation: Market-leading technology platform sets Ag Guard apart from competitors.
• Operational Efficiency: Automated processes reduce administrative burden, enhancing overall efficiency.
• Scalable Growth: The platform supports expansion across Australia and New Zealand markets, enabling Ag Guard to reach more farmers.

"Alex and his team build an impressive and high-growth insurance offering using their deep understanding of the agriculture markets. We strongly believe that combining traditional insurance with parametric coverage is the way to go."

- Thomas Krapf , CEO and Co-Founder, Riskwolf