WRMS and WFP launch parametric insurance pilot in Iraq

By Ryan Hewlett

March 3 - (The Insurer) - Agritech and climate risk management firm Weather Risk Management Services has partnered with the United Nations World Food Programme to launch a parametric insurance pilot scheme in Iraq.

The scheme, which WRMS claims to be the first of its kind in Iraq, is designed to protect smallholder farmers and micro-entrepreneurs from risks associated with climate change.

The pilot projects will be carried out in four districts: al-Hamdaniya, al-Mosul, Tilkaef and Kerbela. Four hundred smallholder farmers are being covered by drought insurance and 400 farmers and micro-entrepreneurs by heatwave insurance.

The drought insurance coverage is for use between December 2024 and May 2025, and the heatwave insurance will be available between July 2025 and September 2025.

The sum insured for drought is up to 700,000 Iraqi dinars ($535), while the heatwave insurance covers up to 1,300,000 Iraqi dinars.

Underwritten by the National Insurance Company of Iraq (Asia Gate Insurance Company), WRMS is acting as the calculation and technical agent to monitor weather indices and trigger payouts accordingly.

This initiative aims to provide “swift and transparent” financial relief for losses caused by extreme weather events including heatwave and drought, WRMS and WFP said in a joint statement on Monday.

India-based WRMS noted that Iraq is one of the most climate-vulnerable countries and is often affected by drought, heatwaves and interrupted rainfall which harms agriculture production.

“The traditional insurance models are often unable to capture smallholder farmers because of the complex processes in submitting claims and the cost involved. To address this, WRMS and WFP have implemented a parametric insurance model that automates payouts based on predefined weather conditions, eliminating the need for traditional claims filing and expediting financial support,” the firms said.