Drought index insurance is now mature. In 2019 farmers in 6 countries on 3 continents have insured their crops against drought, while in 2020 another 8 countries are planned to start this service. For the first time ever countries such as Cambodia, Russia, Ukraine, Latvia, France, and Kenya are using the latest technology available.
Case: the opportunity for Drought Index insurance in Europe
Drought has been hitting farmers in Europe hard over the past years. Again 2019 proved to be a challenging year. The satellite map of drought below shows the hardest hit areas. Farmers in the center of France, parts of Ukraine, Russia, and Latvia that were hit by a severe drought received full or partial payout via their brokers and insurance agencies.