Climate Risk & Parametric Insurance
Protection Triggered by What Actually Happens
Parametric and index-based insurance solutions provide financial protection based on predefined, measurable events or indices such as rainfall, temperature, vegetation condition, flood levels or agricultural yield.
Instead of relying exclusively on traditional loss-adjustment processes, qualifying policies may activate payouts when agreed trigger conditions are met, subject to the applicable policy terms.
VPI facilitates access to a growing portfolio of climate and index-based insurance solutions.
01
Weather Index Insurance (WII)
Protection against adverse weather conditions such as rainfall deficit, excessive rainfall and other predefined weather events. Suitable for climate-sensitive businesses, agricultural production and projects where weather variability can materially affect performance.
02
Area-Yield Index Insurance — AYII
Provides protection based on the average yield performance of a defined geographical area rather than the loss experienced by a single producer. Particularly relevant for agricultural programmes and groups of farmers operating within common production zones.
03
Hybrid Index Insurance
Combines multiple risk indicators or insurance approaches to provide broader and more responsive protection. A hybrid structure may combine weather, vegetation, yield or other relevant indicators depending on the underlying risk.
04
Temperature Index Insurance — TII
Provides protection against predefined temperature-related events such as extreme heat, unusual temperature patterns or prolonged heat exposure. Potential applications extend beyond agriculture to energy, infrastructure, logistics, businesses and other temperature-sensitive sectors.
05
NDVI Index Insurance
Uses satellite-derived Normalized Difference Vegetation Index (NDVI) measurements to monitor vegetation health and support index-based protection. NDVI can provide valuable insight into drought stress, pasture conditions, crop development and vegetation deterioration.
06
Index-Based Livestock Insurance — IBLI
Designed to protect livestock-dependent households and businesses against climate-related conditions that negatively affect pasture, vegetation and livestock productivity.
07
Flood Index Insurance
Provides financial protection against qualifying flood events based on predefined rainfall, water-level, satellite, hydrological or other measurable flood indicators.
08
Carbon Index Insurance
An emerging risk solution being explored to support climate and carbon-related projects through measurable carbon-performance or environmental indicators. This solution is currently under development.