As a concrete action of AXA in protecting farmers in Indonesia against the high risk of crops failure due to climate change, Mandiri AXA General Insurance (MAGI), the general insurance entity of AXA in Indonesia, together with AXA Climate, take the innovative step to bring parametric insurance to Indonesia.
AXA Climate is a special entity formed by AXA Group to provide the solution against the arising risk of impact of climate changes around the globe. AXA Climate provides immediate protection to communities facing climate risks, one of these vulnerable communities is farmers. “AXA Climate, focusing on Parametric Insurance, is evidence of AXA Group’s commitment to offer solutions against the adverse impact of climate change and extreme weather, globally. In Indonesia, AXA Climate is working hand in hand with PT Mandiri AXA General Insurance (MAGI) in introducing this protection to the people of Indonesia,” explained Antoine Denoix, CEO AXA Climate.
To reach out to more farmers in Indonesia, MAGI and AXA Climate entered into partnership with Yayasan Agri Sustineri Indonesia (YASI) through the Safe and Sustainable Agriculture Fund Program (Dana Pandan). Dana Pandan Program is a comprehensive risk management solution that aims to equip farmers with the ability to face major challenges in agriculture activities. Weather Index Insurance (Parametric Insurance) is one of the
important parts in Dana Pandan program.
The parameters used in Parametric Insurance from MAGI and AXA Climate in the Dana Pandan program is the level of precipitation, as the key index of plant growth, which leads to risk of decrease in production yield or increase in production costs. This program will protect farmers in facing financial pressures due to rainfall anomaly.
“Parametric Insurance is an innovative solution that can answer the needs of Indonesian people in relation to agricultural activities and financial risks due to weather and climate change. Whenever the weather index reaches the agreed threshold, MAGI will provide direct compensation to farmers without waiting for the physical inspection of the plant’s condition. This method is very objective and will provide rapid compensation to farmers.
” explained Enny, CEO MAGI.
“Indonesia is one of the focus countries of AXA Group globally, so AXA Climate hand in hand with MAGI, AXA’s subsidiary that offered general insurance in Indonesia, introduces parametric insurance. Witnessing the success of Parametric Insurance in various countries, such as Peru, Brazil, Taiwan, Philippines, Myanmar, and Mexico, we are optimistic that Parametric Insurance solution will be a great help to the farmers and agriculturists of Indonesia,” explained Julien Steimer, Country CEO of AXA Indonesia and President Commissioner of MAGI.
The implementation of the program carried out by MAGI, AXA Climate and YASI, has commenced in several districts in West Java and East Java since the beginning of the planting season earlier this year for the rice crop. This program is expected to develop even further and is accessible by hundreds of thousands of farmers in the years to come throughout Java and outside Java, through new kind of crops and horticulture insurance products, new Parametric Insurance solutions and other types of distribution channels.
“Recognizing the commitment of MAGI in providing various insurance coverage solutions to the people in Indonesia especially the development of Parametric Insurance drives the confidence of YASI to choose MAGI as the insurance partner in Dana Pandan program. Together with MAGI and acknowledging its broad reach, we believe this will be more beneficial for farmers to respond to the challenges and risks being faced in developing
the agricultural sector in Indonesia today.” said Teddy Tambu, Chairman of YASI.
This program demonstrates MAGI’s commitment to always be the preferred partner in providing protection solutions for all Indonesian people and to strengthen MAGI’s goal to become the most innovative and easy to do business with general insurance company in Indonesia. “Following the meetings Dennis Duverne, the Chairman of AXA Group, had with the partners on this topic during his visit to Indonesia, this program demonstrates AXA’s commitment to be the best partner in providing protection solutions for all Indonesian people through innovation and simplicity,” Julien Steimer concluded.