Pakistan: Salaam Takaful extends parametric-based crop takaful coverage
Source: Middle East Insurance Review | May 2022
Salaam Takaful has launched a parametric crop takaful product, a weather-index-based solution on a parametric basis backed with satellite technology and advisory service.
The product works on satellite and weather-tracking technology and in the event a parameter such as excess rainfall (or absence of it) gets triggered, claim pay-outs are also triggered automatically to the farmers.
In this way, a farmer is not required to file the claim and go through the hefty process to get the benefit. Moreover, multiple perils can be parameterised and indexed using this technology and it is highly customisable hence enable farmers to be more resilient to climate change.
As part of its regulatory sandbox initiative to test parametric takaful, Salaam Takaful has initiated parametric crop takaful coverage to 61 farmers in District Rahim Yar Khan. They have collaborated with the Rural Education & Economic Development Society Pakistan to implement the plan for the benefit of farmers. M