Hillridge powers Australia’s first direct real-time agriculture weather insurance platform
Australia’s variable climate means Australian agriculture is subject to more revenue volatility than almost any other country in the world. Despite this, many growers and producers lack easy access to meaningful weather risk management tools.
To address this, Hillridge has signed with Mitsui Sumitomo Insurance (MSI) and Victor Insurance Australia, a subsidiary of Marsh, the world’s leading insurance broker and risk advisor, to launch a weather index insurance platform powered by Hillridge’s technology.
“Traditional crop insurance often only covers bushfire and hail. This new platform addresses the larger risks that farmers worry about – like drought, frost, heat stress, and rain just before harvest,” explains Hillridge CEO, Dale Schilling.
The platform is the first in Australia where farmers can directly log online and get quotes for weather index insurance in real time. Any agricultural business affected by the weather can buy cover through Nutrien Ag Solutions, Australia’s largest farm services company.
The product was jointly developed between MSI GuaranteedWeather, a global leader in the weather risk management industry; Victor Insurance Australia, a subsidiary of Marsh, the world’s leading insurance broker and risk adviser; and Hillridge.
“The current climate crisis has left some Australian regions and industries underinsured or uninsurable. Parametric index insurance products represent a significant shift in the insurance industry,” explains MSI GuaranteedWeather’s President, Brad Davis.
“We are excited to help develop this innovative insurance product that will revolutionise insurance for agribusinesses. We are continually working towards our mission to use insurance products to help secure a sustainable future for our clients and the planet. Weather Index Insurance aligns with this commitment.”
The insurer is Mitsui Sumitomo Insurance Company Limited, Australian Branch (MSI Australia), an Australian Prudential Regulation Authority (APRA) licensed insurance company. MSI Australia recently expanded its business into the adverse weather risk arena to help mitigate Australia’s weather-related financial risks.
An agreed payout is determined before the insurance starts, and when the policy’s conditions are met, the payout is made. The policy is triggered by temperature or rainfall readings, rather than ambiguous language, damage assessments and adjustments to determine claims.
This simplifies the insurance process for both the insurer and the insured, which results in quick claims. When policy conditions are met, payouts can be used to sustain the business or replace lost revenue. The customer ultimately decides the best way to use payments to support the business.
Please visit nutrien.weatherinsurance.com.au for further information on buying Weather Index Insurance or contact your local broker here.
ABOUT US
Hillridge Technology Pty Ltd (ABN 59 626 518 474) is software technology company helping address the climate protection gap – low rates of insurance protection against weather perils – in agriculture and other climate-exposed industries.
While many farmers struggle to protect themselves from drought and other major weather risks, they also miss out on weather derivatives and insurance that larger businesses can access. Because of this, we have made it our mission to help farmers mitigate the financial impact of poor weather on their crops or livestock. Our online platform connects farmers to insurance underwriters who can provide coverage tailored to their farms, to protect against the weather risks that most affect their farming operation. Visit www.hillridge.com.au for more information.
About MSI GuaranteedWeather
MSI GuaranteedWeather, LLC, a wholly-owned subsidiary of Mitsui Sumitomo Insurance Co., Ltd., is a global weather risk management company that manages a dynamic portfolio of diverse weather risks throughout the world. The company offers its customers products that allow for the mitigation of the adverse effects of weather on business revenues and expenses. These products cover risks associated with all forms of measurable meteorological events occurring (or failing to occur) over periods of time as short as a few hours, to multiple years in duration. Visit www.guaranteedweather.com for more information.
Disclaimer
The press release is for information purposes only. None of this press release constitutes a solicitation, an offer, or a recommendation to make decisions, buy any products or services, or effect any transactions. Hillridge makes no guarantee, representation, or warranty that services and solutions described are appropriate or available to you. Hillridge does not assume any responsibility for damages or losses which may occur due to the use of the press release or its content.