Description
Blue Marble’s Parametric Climate Protection Solution is a financial risk management tool designed to mitigate the adverse effects of climate-related disasters on agricultural production. The solution provides predefined payouts triggered by specific weather events such as droughts or floods, eliminating the need for on-site damage assessments. This model reduces transaction costs, ensures timely payments, and increases financial resilience among smallholder farmers.
Technology
Parametric Climate Protection Solution leverages cloud-hosted policy administration systems, interactive weather index design and pricing software, and a mobile-based customer enrollment platform. By integrating big data and remote sensing, the system ensures efficient policy design, monitoring, and administration of parametric agricultural insurance schemes. The Parametric Climate Protection Solution enhances parametric agricultural insurance through two core technologies: 1) AgSuite: Cloud-based platform for parametric agriculture schemes, featuring policy administration, weather index design, agronomic models, mobile enrollment, education tools, APIs, and a web portal for tracking and visualization. 2) DxSuite: Scalable API for mass-market schemes, enabling multi-interface integration, easy product setup, data validation, multi-channel support, and secure cloud hosting, ensuring compliance with local data privacy laws. Additionally, enrollment is facilitated via mobile platforms, integrating policy activation with weather-based triggers. Automated monitoring mechanisms enable timely disbursements, eliminating the need for claims processing and enhancing both accessibility and resilience.
Target
Primary beneficiaries of the solution are smallholder farmers, medium and large-size farms, and rural communities in climate-vulnerable regions such as Zimbabwe, Mozambique, and Bangladesh. The solution aims to improve financial resilience, promote risk reduction strategies, and ensure sustainable livelihoods for farmers and agrarian communities. Blue Marble collaborates with governments, development agencies, and agribusinesses to extend coverage to underserved populations, ensuring a safety net for financially vulnerable communities.
Business model
Blue Marble provides end-to-end parametric insurance solutions, including the design of risk indices, policy administration, and operational management. The initiative operates under a hybrid model, combining fee-for-service and donor-supported funding mechanisms collaborating with WFP and IFAD. BlueMarble does not offer insurance scheme on its website.
Impact
The initiative has provided insurance coverage to thousands of farming households. Industry reports state Blue Marble has reached more than 1.4 million beneficiaries across ~15 countries.The solution can enhance agricultural resilience by ensuring timely financial relief and facilitating long-term economic stability for vulnerable communities.
Partners
Cafexport enterprise; Clac-Fairtrade network; Davivienda bank; InsuResilience Global Partnership; International Fund for Agricultural Development (IFAD); Mondeléz International Inc.; Nespresso; Nestlé; Old Mutual Limited; Swiss Capacity Building Facility (SCBF); Seguros Bolívar; UNDP; USAID; WFP
Four Betters
Better production
Better environment
Better life
