Drought insurance product to protect farmers against climate fluctuations has just been launched in Viet Nam.
This is a continuation of the successful partnership between Hillridge and MSIG in the Australian market, where the two companies have been working since 2021 to protect farmers from climate events that affect crops.
Accordingly, the insurance payment does not depend on the extent of damage but will depend on the amount of rainfall in that area as stipulated in the contract. If the automatically calculated and measured rainfall is lower than the amount specified in the insurance policy, the enterprise's system will automatically calculate, the insurance payment will be made on a weekly basis not by month. Farmers and smallholder farmers in all areas of agricultural production that are affected by drought can access these products.
In Viet Nam, nearly 40% of the land is used for agricultural purposes and this industry accounts for almost 13% of the total GDP, so this product is a reliable shield to help farmers protect their livelihoods and protect their livelihoods. what they value. While Viet Nam is one of the countries heavily affected by climate change. Products with similar models will play an increasingly essential role in the lives of Vietnamese farmers as they need to protect their livelihoods against the increasing weather fluctuations caused by rising global temperatures, sea level rise, water salinization and frequent droughts.
In response to the risk of drought caused by El Nino to the agricultural sector, in May 2023, the Government of Viet Nam sent a delegation to Quang Nam to study risks to crops from now until the end of the year. The report shows that the central provinces from late summer 2023 to early 2024 will have a 70 to 80% probability of drought.