Designing Crop and situation specific products

ICICI attempts to cover the entire crop cycle which is divided into phases, so that complete protection can be provided. Different phases may involve different weather parameters which are illustrated as follows:

23.6.1 Wheat

In the early 20th century, Howard, a British Scientist at the Pusa Institute observed, 'Wheat cultivation in India is a gamble with temperature'.

After analyzing the impacts that temperature has on wheat cultivation, ICICI Lombard had designed a Weather Insurance Product for wheat cultivators which addresses the dual risks of extreme temperature fluctuations and unseasonal rainfall (Table 23.2).

Table23.2. Weather Insurance Product for wheat

Time Period

Ian - Mar

Mar - Apr


Grain Filling Stage

Harvesting phase


Extreme temperature fluctuations

Unseasonal rainfall

Weather Index

Deviation in fortnightly average Tmin and Tmax on higher side from benchmark

Max. rainfall on any single day

Table23.3. Weather Insurance Product for Apple

Time Period

Dec to Mar Mar to May

April to Aug


Dormancy (Rest) Flowering

Fruit set and development


Non availability of Extreme temperature sufficient chilling and fluctuations moisture

Non availability of sufficient water

Weather Index

Chilling units as per GDD, a Tmin and Aggregate rainfall Utah model Tmax based index that during subphase of the Aggregate captures deviations on crop phase precipitation higher and lower side

Table23.4 Weather Insurance Product for salt manufacturers

Time Period

Mar - Sep


Production period, when normally rainfall i

is not expected


Unseasonal rainfall

Weather Index

A Non Production Day(NPD) has been defined as a day with rainfall during the production period.

NPDs have further been categorised as type A(l-9 mm), type B (10 - 24 mm) and type C(>=25 mm)

Compensation paid ifNPDs observed is higher than a pre-determined level. Compensation is highest for type C NPDs and lowest for type A NPDs.

23.6.2 Apples

Weather Insurance Product for apples is shown in Table 23.3.

Salt manufacturing

Expanding the market to get benefit of diversification for agricultural risks, the first Weather Insurance deal for salt manufacturers was designed (Table 23.4), Weather Insurance was provided to an industry which was non-agricultural in nature in India.

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