Climate change is generating negative impacts in terms of contraction of agricultural production and market fluctuations (in 2020 the total damage has been quantified by ISMEA at more than €600 mln of catastrophic damage) enhancing the effectiveness of risk management measures means creating a sustainable, resilient and innovative system, while respecting the principle of efficient public spending. In this context, Cetif, Hort@ (model&data provider), innovative startup WESMARTi (platform provider) and Reply (industrial partner) have combined their skills and experience to bring parametric policies to the Italian Agrifood market and create the first technology-based ecosystem blockchain.
According to the proponents, the availability of parametric digital and facilitated policies, based on technology blockchain, "would enable a functional, effective and diversified response to the many case histories, conditions and scenarios of the Agrifood supply chain." To farmers, it would in fact offer a tool with which to manage the entire process in a simple way: from the underwriting of the subsidized policy from public contribution to compensation.
"Thanks to the systemic approach," comments Chiara Frigerio, Secretary General Cetif, "with our Sandbox we are moving an important new step in support of the country's agricultural supply chain. The availability of parametric digital policies that are simple, efficient - based on technological and regulatory innovation - and eligible for community public subsidy would represent a real revolution, which the insurance sector is called upon to effectively oversee and promote."
Those who participated in the Sandbox
On the project's Scientific Committee-which is responsible for directing and monitoring the experimentation and bringing its evidence to institutional contexts-are IVASS, ISMEA, ANIA, Asnacodi Italia, Coldiretti, Confagricoltura, CoorDifesa.
In a note, it is specified that Cattolica Assicurazioni and Reale Mutua Assicurazioni are the first Companies that have concretely tested with their own end customers (Farms) parametric solutions to guarantee phytopathy risk (downy mildew, powdery mildew, gray mold, black-rot) for the wine grape supply chain.
"Membership in the initiative remains open to all Insurance Companies, Distributors and Farms interested in developing and testing parametric policies on adversity/crop risks that can be insured on a subsidized basis."