Arya Collateral and AICIL Announce Parametric Insurance Coverage for Agricultural Warehouses in India
Arya Collateral and Agriculture Insurance Company of India Limited (AICIL), India’s leading post-harvest services company, has announced the establishment of a first parametric insurance coverage to mitigate the risk of using agricultural warehouses. Arya, in partnership with AICIL, has developed a weather-based parametric insurance product that will protect professional warehouse operators from the risks of use resulting from extreme weather conditions during the growing and harvesting stages of the crop. .
The risk of use dissuades professional warehouse operators from creating storage capacities for farmers when they leave the farm. This invariably increases the cost of storage for farmers and other stakeholders. The deal will also help mitigate the risk of using warehouses bundled through Arya’s a2zgodaam.com.
The insurance pilot has been performed in 3 states and 28 districts by Arya. Under this, Arya’s designated warehouses are mapped to block-level gridded weather data from the Indian Meteorological Department to enable insurance coverage. This helps protect professional warehouse operators from the financial inconvenience of paying rent despite low usage in the event that inclement weather conditions lead to lower arrivals of goods.
Ritesh Raman, Managing Director of Arya, said: “The facility will give confidence to Arya’s business partners to offer competitive rates to its customers. In addition, it is a one-of-a-kind solution launched in India to avoid the risk of use for warehouse owners resulting from adverse weather conditions. Based on the learnings and pilot experience, we fully intend to refine and extend the program offer with AICIL in association with Gramcover who worked closely with us on the contours and structuring of the product.
Arya provides end-to-end post-harvest product management and finance services for smallholder farmers, producer organizations and other stakeholders in remote agricultural markets, enabling them to avoid the disaster sale of agricultural products. .
Registered as a Composite Insurance Broker with the Insurance Regulatory and Development Authority of India (IRDAI), Gramcover was founded in 2016. As a rural focused insurance brokerage company, Gramcover pulls using technology and a network of point-of-sale partners to make insurance accessible to all. . The company has adopted a unique technology-driven distribution and service model, well suited to rural environments, to minimize inefficiencies and transaction costs involved in the process.