WTW-owned Willis and CelestePro-owned parametric risk transfer provider Global Parametrics have revealed that payout for an “innovative” parametric policy has been allocated to coffee farmers in Vietnam’s central highlands who have suffered losses due to high rainfall in the 2025/26 coffee growing season.
Willis explained that in late 2025, it provided Bao Minh Insurance Company of Vietnam with a high rainfall parameter solution that protects coffee farmers’ income from yield losses caused by excess rainfall during the “golden” harvest period.
“The solution uses NASA satellite data to measure rainfall in three districts of Gia Lai province – West Iglai, East Iglai and North Juplon districts. If rainfall exceeds a predetermined value, insurance is triggered and farmers receive timely payments without the need for lengthy claims processes or on-site assessments,” explains Willis.
The risk capacity to support payments is reportedly being provided by the Natural Disasters Fund (NDF), a public-private partnership managed by Global Parametrics and funded by the UK Foreign, Commonwealth and Development Office and KfW Germany.
Willis noted that the 2025/26 policy coincided with Typhoon Kalmeji, which caused the worst flooding in modern times in Vietnam’s central highlands.
According to the company, more than 1.7 meters of rain fell in some areas of Vietnam’s central highlands, with Gia Lai province being the worst affected area.
Some coffee farms were reportedly completely submerged, leading to a significant drop in production.
Nathan Pereira, Alternative Risk Transfer Solutions Analyst at Willis, commented: “This program provides vulnerable coffee farmers with tailored and timely financial protection, while increasing trust in insurance and deepening understanding of how effective risk solutions can support their livelihoods.”
Mark Rueegg, CEO of CelestPro Group, said: “Providing fast, reliable payments after extreme weather events is exactly what parametric solutions are designed to do.
“This program demonstrates how innovative risk transfer, supported by strong public-private partnerships, can provide meaningful financial resilience to vulnerable farming communities.
“By combining advanced data with local expertise, we are helping to close conservation gaps and support more sustainable agricultural livelihoods as climate volatility increases.”
The payouts come shortly after funding was triggered under a separate parametric drought policy developed and implemented by Willis in 2024, also for the benefit of Vietnamese coffee growers.
The new high rainfall policy aims to build on this success by expanding the range of parameter protections available to farmers.
It is part of a program supported by the InsuResilience Solutions Fund (ISF) and implemented in partnership with Willis, ECOM Agroinduscial Corp. Ltd, Bao Minh Insurance Corporation, the International Center for Tropical Agriculture (CIAT) in Vietnam and the University of Southern Queensland (UniSQ) in Australia.
Nguyen Thi Mai, sustainability program associate at ECOM Agroinduscial Corp. Ltd, added: “This payout highlights the value of innovative risk solutions in agriculture, demonstrating how these initiatives can translate into real support for farmers facing extreme weather.
“Working closely with partners, it reflects a joint effort to help farmers manage climate risks while contributing to more resilient and sustainable supply chains.”
