A Year After Launched, Sharia Parametric Weather Index Insurance Successfully Protects Thousands of Coffee Farmers

Aceh, 2 August 2023 – After the Sharia Weather Index Parametric Insurance by PT Zurich General Takaful Indonesia (Zurich Syariah) was launched last year, this product currently protects thousands of coffee farmers in Bener Meriah, Aceh. This is the first time Indonesia has sharia parametric insurance for coffee farmers.

At the media discussion on Wednesday (2/8), President Director of Zurich Syariah, Hilman Simanjuntak, explained, "As a country with high average rainfall and one of the world’s largest coffee producers, farmers in Indonesia are vulnerable to extreme weather risks. We collaborate with various parties to continue educate the importance of insurance protection. Zurich Syariah also directly introduces this product to companies that collaborate with coffee farmers and their cooperatives."

In October-December 2022, satellites captured high rainfall in the Bener Meriah area, so that more than 200 (two hundred) farmers were affected and received insurance benefits from this product.

Claims are processed by Zurich Syariah based on satellite data reports monitored by Blue Marble Microinsurance, an experienced and credible parametric insurance product developer. Insurance benefit payments are triggered by weather conditions, so farmers do not have to deal with administrative processes to get the claims disbursed. Given its success, Sharia Weather Index Parametric Insurance will be expanding to protect coffee farmers in Lampung (Tanggamus) by quarter III (three) of 2023.

Chief Sales and Distribution Officer of Zurich Syariah, Auralusia Rimadiana, said, "Aligned with Zurich's commitment to present innovative protection according to customer needs, Zurich Syariah will also continue to expand the Syariah Weather Index Parametric Insurance coverage not only for coffee farmers but also for other agricultural and plantation commodities."

On the same Wednesday, Zurich Syariah conducted a workshop for the farmers regarding the impact of climate change and also donated various agricultural tools for farmers to support their business.

More information is available at www.zurich.co.id.

PT Zurich General Takaful Indonesia is licensed and supervised by the Financial Services Authority (Otoritas Jasa Keuangan/OJK).