Nepal drought parametric insurance payout supports families facing hunger and poverty

Tearfund, the UK-based international humanitarian and development organisation, has reported what is believed to be the first drought insurance payout of its kind in Nepal, helping vulnerable families avoid severe food shortages and deeper poverty following failed harvests.

Nepal drought parametric insurance payout supports families facing hunger and poverty. Tearfund, the UK-based international humanitarian and development organisation, has reported what is believed to be the first drought insurance payout of its kind in Nepal, helping vulnerable families avoid severe food shortages and deeper poverty following failed harvests. The payout was triggered through a parametric insurance product developed by Global Parametrics, part of CelsiusPro Group, which uses satellite data to monitor water availability for crops. The scheme is designed to release funding quickly when drought conditions reach agreed thresholds, allowing support to reach communities before the worst impacts are felt. The insurance premium was supported by Humanity Insured, a UK-registered charity backed by the insurance industry. According t...