Rokstone and AIR Parametric get Liberty capacity for parametric US dairy industry cover

By Chris Munro

May 19 - (The Insurer) - Rokstone Agriculture has partnered with AIR Parametric and launched an innovative product that provides U.S-based dairy producers with protection against the impact of heat stress on their herds, with the new coverage backed by admitted capacity from Liberty Mutual.

Called Milkshake, Rokstone Agriculture said the product is the first parametric coverage designed to tackle the growing issue of heat stress in the U.S. dairy industry.

The new coverage has been launched in response to rising temperatures and humidity between May and October, which are affecting both milk production and the prevalence of illness and death in cattle herds.

Those illnesses and deaths are driving up costs for all livestock producers while pushing down revenue, with livestock industry estimated to be suffering losses of more than $2 billion each year.

“Milkshake combines technology and data with specialist underwriting expertise and distribution to deliver something truly unique to the market,” said Rokstone Agriculture’s CEO Eric Conklin.

“Rokstone has been active in the parametric space for several years, and this demonstrates our ability to act in the most agile and collaborative way possible to tackle the needs of the livestock industry at a time of increased climate risk and volatility.

“We’re renowned for our innovative approach and it’s a pleasure to work in partnership with another like-minded MGA for the benefit of the industry as a whole,” Conklin added.

Jamie Luce, AIR Parametric’s CEO and co-founder, said every farm and customer is different, and the new Milkshake product is built with location-specific weather triggers that are unique to a farm’s location.

“Combined with Rokstone’s specialist team and fresh approach to addressing livestock risks, we are providing much needed and timely financial relief for dairy producers and cattle feeders,” said Luce.