Targeted insurance offers French farmers some drought relief

Source(s): Thomson Reuters

By Inti Landauro

PARIS — Hundreds of French farmers who signed up for specialist policies aimed at insuring against freak weather are getting swift payouts which could help them recover from heatwaves and prolonged droughts that hit parts of the country.

The payments underline how so-called parametric policies, which pay out when a pre-agreed event such as a hurricane of specific intensity occurs, are becoming a growth market for insurers in developed economies as global temperatures rise.

[...]

“This year, all the French farmers who signed a drought contract got a payout,” Gabriel Gross, chief executive of Paris-based insurance and re-insurance company Meteo Protect.

[...]

“Traditional insurers would evaluate damage with satellite photos and other means that are hard to follow. Then they pay you weeks or months later, leaving you with cashflow problems.”

[...]

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Hazards Drought Heatwave
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