Bharat in BetaSmall-ticket weather-index crop insurance
Source
- Ankur Capital, IBISA investment rationale (opens in a new tab)IBISA's StoryPublished: 19 Aug 2024
The idea
Use environmental data to serve smallholder risks.
Why this is interesting
- Parametric cover pays on a measured weather or environmental trigger rather than an assessed loss, which can make small policies cheaper to serve. The gap between the trigger and what a farmer actually lost is the central product problem.
- The source is Ankur Capital explaining why it backed IBISA. This product line is an existing company’s offering described by its investor, so it is an example of an approach rather than evidence that buyers are unserved.
Possible starting points
Trigger testing for one crop and area
Work with an insurer or distributor to test how well a trigger matches recorded losses in one area.
Payout explanation at the last mile
Help the distributor explain to farmers why a payout did or did not happen.
Questions to answer
- Through whom does a policy reach the farmer, and who carries the cost of distribution?
- How often does the trigger miss losses farmers experience, and how is that handled?