Index-based agricultural insurance
An insurer protects herders against dzud with index-based payouts and no claim notifications.
Situation
An insurer in Mongolia wants to protect herders against dzud. Assessing damage at thousands of farms over long distances is costly and slow, and the payout is needed fast.
How it works in the system
- 01The index and the areas where it is published are added to the reference data
- 02A payout rule sets the index threshold and the payout amount per area
- 03Herders are insured with a product that has index-based livestock coverage
- 04When the published index value crosses the threshold, the system calculates payouts for all contracts in the area
- 05Payouts go through approval and execution like ordinary claims
Result
Herders receive a payout with no claim notification or on-site assessment, and the insurer does not keep a staff of loss adjusters across the whole territory.
Features in this use case
Index insuranceProfessional and Enterprise plans.
Product builderAll plans. Starter allows up to five products and three lines of business.
Claims settlementAll plans. Anti-fraud scoring and recovery from the Professional plan.
Shall we show the system on your products?
We will build your product in the builder, take a policy from quote to claim and estimate the implementation cost for your lines of business and countries.