Blue Marble, a company that provides insurance protection to underserved communities, has reportedly paid out the largest ever parametric insurance payout to smallholder farmers in Indonesia, with all 2,719 farmers enrolled in the program receiving payouts, with claims totaling more than IDR 2.4 billion.
The recent flooding in Aceh is one of the most devastating climate events in the region this year, Blue Marble reports.
Heavy rains are said to have flooded farmland, disrupted livelihoods and tested the resilience of entire communities.
“The system automatically activates when extreme rainfall exceeds predetermined scientific thresholds,” the company said, adding that the payout stated that the parametric insurance worked exactly as designed.
Blue Marble says funds are paid directly to cooperatives and farming communities, and payments are delivered quickly when liquidity is most important.
The company observed that objective, science-based triggers reduce ambiguity, while automated mechanisms help minimize delays.
“Immediate liquidity allows farmers to replant, stabilize incomes and protect their families without going through months of uncertainty. This is more than just a payout. It is a record-setting demonstration of what climate risk protection should look like in practice,” Blue Marble continued.
Iwan Ariantoa, head of the ACG cooperative, commented: “With this insurance, losses due to reduced harvests can be partially compensated, so farmers still have funds to continue maintaining their farms and prepare for the next harvest season. This insurance is not only a protection tool, but also supports the economic sustainability of farmers.”
