Vietnam coffee farmers receive parametric insurance payouts
Willis and Global Parametrics have announced payouts of an innovative parametric policy have been distributed to coffee farmers in the Central Highlands of Vietnam who suffered losses due to high rainfall during the 2025/26 coffee growing season.
These payouts come shortly after funds were triggered under a separate parametric drought policy structured and placed by Willis in 2024, also for the benefit of Vietnamese coffee growers. The new high rainfall policy aims to build on this success, increasing the scope of parametric protection available to farmers.
In late 2025, Willis placed the high rainfall parametric solution with Bao Minh Insurance Corporation in Vietnam, protecting coffee farmers’ revenue against a loss of yield due to excessive rainfall during the ‘golden’ harvesting period. The solution uses satellite data from NASA to measure rainfall levels in three areas of the Gia Lai province – West Ia Grai, East Ia Grai and North Chu Prong. If the rainfall exceeds predefined values, the insurance is triggered and the farmers receive timely payouts without the need for lengthy claims processes or on-the-ground assessments.
Willis said that once again its parametric solution responded exactly when needed. The 2025/26 policy coincided with Typhoon Kalmaegi, which caused some of the worst flooding of modern times in the Central Highlands of Vietnam. Rainfall exceeded 1.7m [1] in some parts of the central highlands with Gia Lai being one of the areas badly affected. This decimated livelihoods, with some coffee farms completely submerged, significantly reducing yield [2].
Nathan Pereira, analyst, Alternative Risk Transfer Solutions at Willis, said: “This programme delivers tailored and timely financial protection to vulnerable coffee farmers, while strengthening trust in insurance and improving understanding of how effective risk solutions can support their livelihoods.”
Risk capacity to support the payouts was provided by the Natural Disaster Fund (NDF), a public-private partnership managed by Global Parametrics, a subsidiary of CelsiusPro Group, specialising in parametric protection against climate and natural disaster risks. The NDF is funded by the UK government’s Foreign, Commonwealth and Development Office and Germany’s development bank KfW.
The high rainfall programme formed part of an initiative supported by the InsuResilience Solutions Fund (ISF), delivered in partnership with Willis, ECOM Agroindustrial Corp. Ltd, Bao Minh Insurance Corporation, the International Center for Tropical Agriculture (CIAT) in Vietnam, and the University of Southern Queensland in Australia.
Nguyen Thi Mai, sustainability project assistant at ECOM Agroindustrial, said: “This payout underscores the value of innovative risk solutions in agriculture, demonstrating how such initiatives can translate into real support for farmers facing extreme weather. Through close collaboration with partners, it reflects a shared effort to help farmers manage climate risks while contributing to a more resilient and sustainable supply chain."
The benefits of this solution are reflected in farmer experiences. Truong Hong Thanh, a farmer from Gia Lai province, purchased weather insurance after attending an insurance training programme in September 2025. Following compensation for weather-related damage that helped restore his garden, he recognised its value and intends to continue using it while encouraging his relatives and fellow farmers to do the same.
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