BRISBANE, May 31, 2023 – WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company, has announced the launch of Nitrogen Risk Insurance, the world’s first parametric insurance solution that allows sugarcane farmers in Queensland, Australia, to cover the risk of yield shortfall from reduced applications of nitrogen fertiliser on ratoon crops.
Nitrogen fertiliser costs have doubled in Australia in the past year, with prices forecast to remain high for the foreseeable future. Until now, sugarcane farmers have had to spend more on fertiliser or seek to reduce fertiliser application rates at the risk of reducing crop yield, potentially causing even greater economic impact to their operations. Instead of risking these losses, WTW has developed a unique Nitrogen Risk Insurance solution, underpinned by CSIRO science that safeguards sugarcane farmers’ profitability.
“WTW is proud to have developed a new type of parametric insurance which pays out faster for sugarcane farmers”
Russell Mehmet | Strategic Account Director, Corporate Risk and Broking
Russell Mehmet, WTW Account Director said: “WTW is proud to have developed a new type of parametric insurance which pays out faster for sugarcane farmers, underpinned by over 20 years of sugarcane production research by the CSIRO including soil, agronomy and climate data. With each policy being tailored to crop location, soil type and crop start time, farmers can insure one, some, or all of their ratoon blocks, providing complete flexibility and control over their buying decision.”
“Furthermore, Nitrogen Risk Insurance claim payments are triggered by Bureau of Meteorology weather measurements including rainfall, temperature and solar radiation, which means the claims process is automated. Insurance assessment is not required and farmers won’t have to lodge a claim,” he continued. This is a new way of administering insurance which increases efficiency for everyone.
An additional benefit from applying the parametric insurance solution will be positive environmental impacts arising from a reduction in nitrogen application to farms. Nitrogen fertiliser run-off to local Queensland waterways is recognised as a cause of degraded water quality on the Great Barrier Reef, impacting the reef’s health and contributing to outbreaks of crown-of-thorns starfish that can cause coral cover decline.
“WTW’s Nitrogen Risk Insurance allows farmers to facilitate decisions that ultimately benefit water quality and help improve the reef’s resilience to climate change, while remaining confident that their crop yield and profits remain protected by WTW’s parametric solution,” added Mehmet.
More information can be found at Agribusiness.
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