CelsiusPro Group, a provider of parametric insurance solutions for climate risk, has partnered with ECOM Agroinduscial Corp Ltd., a soft commodities services group specializing in coffee, cocoa and cotton, to provide parametric insurance to Indonesian farmers exposed to climate and natural disaster risks.
The initiative is funded by the University of Southern Queensland (UniSQ), Australia, the Natural Disasters Fund Technical Assistance Fund and the Swiss Capacity Building Fund (SCBF).
According to CelsiusPro, the partnership focuses on helping coffee farmers in the region build climate resilience, where changing rainfall patterns and other climate-related disasters are having a significant impact on yields and farmer incomes.
The partnership involves the co-design, refinement and distribution of parametric insurance products that implement a ‘consumer pays’ approach and a strong capacity-building component to train and engage local stakeholders, including farmers, agriculturists and agribusinesses, on insurance solutions and climate risk management.
“With ECOM’s coffee supply chain, the ‘consumer pays’ approach means that the costs associated with climate insurance, such as insurance premiums and management fees, will be allocated to consumers who purchase coffee from certified, climate-insured farms,” explains CelsiusPro.
The products will reportedly build on coffee certifications already on the market to help increase the resilience of the coffee supply chain, with minimal additional contribution from each consumer.
Mark Rueegg, CEO of CelestPro Group, commented: “Our partnership with ECOM will help Indonesian farmers manage climate risks and income fluctuations.
“The increasing frequency and severity of climate-related events in the region makes accessible and affordable insurance products even more important.”
SCBF CEO Sitara Merchant-Carter said: “This project demonstrates how innovative partnerships can deliver climate-smart insurance solutions with the potential for sustainable scaling. This initiative transforms climate risks into inclusive insurance solutions, building real resilience for underserved communities.”
Laurent Bossolasco, Sustainability Manager at ECOM, noted: “We are delighted to be working with Celsius Pro Group on this project. The parametric insurance product we are designing, along with wider educational support, will be critical to overall strengthening the climate awareness and financial resilience of Indonesian farmers. These actions will really make a difference in the long term.”