ISF supports new parametric schemes in Ecuador and Dominican Republic

By Henry Gale

March 7 -

• ISF backs parametric insurance in Ecuador, Dominican Republic

• Ecuador's first parametric insurance for smallholder farmers

• Dominican Republic scheme protects against wind, drought, excess rainfall

(The Insurer) - The InsuResilience Solutions Fund (ISF) has announced it is supporting the development of parametric climate insurance covers in Ecuador and the Dominican Republic.

Both projects involve Guy Carpenter Mexico, Axa Climate and insurtech Blue Marble, with additional support from the United Nations Development Programme.

The Ecuador scheme is the first parametric insurance cover for smallholder farmers in the country, the ISF said. The government-backed CampoSeguro programme, which will work with the ISF and private sector partners on the product, currently offers indemnity-based agriculture insurance.

Since many smallholder farmers in the country are unbanked, the consortium is exploring payout methods such as money orders, which allow beneficiaries to receive cash directly at any bank branch.

The new parametric product in the Dominican Republic aims to protect vulnerable families from wind, drought and excess rainfall risks. Parametric specialist CelsiusPro is providing digital tools for policy administration, monitoring and claims settlement.

The Dominican Republic’s social protection programme Supérate is also involved in the coverage. It is intended to complement the country's Emergency Bonus scheme that provides cash transfers to families affected by disasters.