What is the product?

AXA XL’s parametric microinsurance scheme was designed specifically to protect coffee and grain farmers against drought and excess of rain events in Nicaragua. The scheme covers both excessive rainfall and prolonged drought, and payouts are activated when precipitation data from satellites records values that exceed or fall below pre-established region and crop-specific rainfall triggers. It is aimed at micro-enterprises with a significant agricultural portfolio exposed to adverse weather conditions.

How does it support green outcomes?

Agriculture is a substantial contributor to the Nicaraguan economy and Nicaragua is also one of the regions most vulnerable to the impacts of climate change. By offering this protection, we support more than 15,000 coffee and grain farmers, more than 90% of whom possess fewer than 10 hectares of land, against drought and excess of rain events to support better customer outcomes and faster recovery following climate-related extreme weather events.

How does it enable customers today?

AXA XL developed, reinsured and launched a novel parametric insurance programme for smallholder farmers in Nicaragua. The scheme covers both excessive rainfall and prolonged drought, and payouts are activated when precipitation data from satellites record values that exceed or fall below pre-established region and crop-specific rainfall triggers.