Sompo Japan Nipponkoa has developed a prototype of Weather Index Insurance for the Myanmar Rice Federation. This cover will help to predict and mitigate farmers’ financial losses in the event of unusual climate conditions and could play an important role in the on-going development of Myanmar’s agricultural sector.

Specifically, weather index insurance is a product that pays a fixed claim amount when weather indexes such as those tracking temperature, speed of wind, rainfall amount or sunshine duration meet certain predetermined conditions. Sompo Japan has stated that this product was created in response to the worsening impact of climate change on the agricultural sectors of developing countries, which are particularly vulnerable in this respect. As part of the agreement, the Myanmar Rice Federation will collaborate with authorities, farmers and industry groups to collate the necessary information for its partner to create its prototype. It will then collaborate with Sompo Japan Nipponkoa to devise seminars and other educational sessions to improve farmers’ understanding and awareness of weather index insurance.

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