“The Challenges of Index Insurance: Best practices for the Earth Observation Sector”. This special report focuses exclusively on index insurance as a risk management instrument in agriculture and applying satellite data and technologies to enhance existing insurance solutions.
GeoVille together with its partners Agroinsurance International and VITO releases a white paper on “The Challenges of Index Insurance: Best Practices for the Earth Observation Sector”. This special report focuses exclusively on index insurance as a risk management instrument in agriculture and applying satellite data and technologies to enhance existing insurance solutions. It is dedicated to both, the agro-insurance as well as the earth observation sector, to raise awareness on possibilities and opportunities.
Index insurance is a type of insurance that covers the probability of a predefined event happening instead of indemnifying the actual loss incurred as traditional insurance does. The uncertainty between the index and the actual loss or damage is called the basis risk. This basis risk, the needs of customers as well as the interpretation of satellite data-based are addressed in this paper as the key challenges index insurance faces.
Earth Observation holds numerous possibilities for the insurance industry and generates new opportunities for index insurance applications. The EO industry can support agricultural insurers with huge volume of historical and near-real time data for any type of insurance products. Here, the paper on the one hand raises awareness in the insurance sector on the possibilities of EO; on the other hand it provides details on the (technical) needs of insurers for a better understanding thereof in the EO sector. This will enhance a potential future uptake of EO applications to better fit the daily workflow of insurers.
At the AgroInsurance International Conference in September 2022, Roman Shynkarenko will talk about parametric insurance and give first insights in this paper. Stay tuned for further opportunities to get in touch with the authors of this paper.
The White Paper can be downloaded for free here: