THAILAND, 17 June 2021 – SOMPO Insurance Thailand Pcl. (CEO: Ms. Chayanna Siripirom (hereinafter referred to as “SOMPO Thailand”)), a subsidiary of SOMPO Holdings, Inc. (Group CEO & Managing Director: Mr. Kengo Sakurada (hereinafter referred to as SOMPO Holdings)), cooperates with Marubeni Corporation (hereinafter referred as Marubeni) and Productivity Plus Co., Ltd. (hereinafter referred as Productivity Plus), a subsidiary company of one of the largest sugar refining company in Thailand to launch the first parametric weather insurance program for sugar cane farmers in May, 2021.
1. Background & purpose
- A number of natural disasters stemming from global climate change, such as extreme drought and the resulting instability of farmers’ household earnings, have become major issues in Thailand in recent years. SOMPO Thailand has provided a parametric weather insurance program for rice farmers since 2010, and for Longan farmers since 2019.
- Currently, sugar cane has been exposed to drought risk. Productivity Plus has been investigating a way to launch an efficient support program, including utilization of insurance, cooperating with Marubeni, to enable stable growth for affiliated farmers and to realize stable and sustainable procurement of sugarcane.
- SOMPO Thailand has used its experience in parametric weather insurance for the rice and Longan farmers market to introduce a parametric weather insurance program for sugar cane farmers who purchase a specific fertilizer from Productivity Plus. SOMPO Thailand combined local knowledge with technical support from AgriSompo, Sompo International’s (hereinafter referred to as SI) integrated agriculture platform that delivers both traditional and innovative crop insurance productivity tools to farmers, rangers, farm suppliers, insurers, and a variety of other agribusinesses around the world.
2. Outline for parametric weather insurance program (Sugar cane)
- Target group: Affiliated sugar cane farmers who are purchasing specific fertilizer from Productivity Plus
- Target crop: Sugar cane
- Target area: Chaiyaphum province
- Target risk: Drought during the key growing period
- Compensation: Compensation for drought that cumulative rainfall from GSMaP※1 is below climatological estimates
- Data provider: Remote Sensing Technology Center of JAPAN (RESTEC)※2
- Insurance company: SOMPO Thailand is the lead underwriter.
※1 Global Satellite Mapping of Precipitation (GSMaP)
A real time satellite derived global rain fall map from Japan Aerospace Exploration Agency (JAXA).
※2 The Remote Sensing Technology Center of Japan (RESTEC)
Foundation providing research and development from satellite driven remote sensing data.
SOMPO Thailand shall cooperate with Marubeni and Productivity Plus in an attempt to develop other areas in Thailand by giving support to stabilize household earnings and reduce drought risk for sugar cane farmers. Utilizing the global expertise of AgriSompo in agricultural insurance and risk management, SOMPO Thailand will support the development of agriculture, one of the most important industries in Thailand.