Fairfirst Insurance putting spice farmers at ease
Fairfirst Insurance, in collaboration with Oxfam, launched a Weather Index Insurance that commits to protect Sri Lanka’s farming community, specifically the spice farmer. Insurance schemes available in the market at present do not cater to spice farmers, as such this insurance policy by Fairfirst will be a strong supplement to existing insurance coverages available to Sri Lanka’s farming community.
Farming has been the hallmark of every human civilisation that has endured history and they are a community who are integrally tied to the success of local communities and the economy. However, with unexpected changes in climate patterns, farmers are left facing numerous challenges.
They say water is the source of life and a shortage or abundance of rainfall can take a huge toll on the survival and development of any crop.
When facing these situations, the implementation of an effective solution to overcome the challenges farmers face is crucial. As such, Fairfirst Insurance recently paid out claims to 49 farmers where the rainfall exceeded the threshold defined in the policy. Commenting on the Weather Index Insurance, Chief Strategy Officer of Fairfirst Insurance - Sandeep Gopal said,” Insurance is a buffer against the unexpected. Although we cannot foresee the unexpected that makes it even more important for us to make insurance relevant for each target market. For farmers the unexpected is almost certainly an everyday situation as weather patterns keep changing and has become even more unpredictable.”
As the name of the cover – Weather Index Insurance – suggests, it is attributed to excess rainfall or drought to activate the policy. With the support of the Meteorological Department and Dialog weather stations in the region, Fairfirst was able to obtain data required to process and settle claims of spice farmers. However, in the long run it is imperative to expand weather stations in the country to revolutionise weather index-based insurance.