Spain’s agricultural cooperative, Asaja-Jaén, today announced that 100% of the cooperative’s membership who subscribed to parametric insurance to reduce the financial consequences of extreme temperatures on their olive fields this spring have already received compensation as a result of their coverage through Meteo Protect, following the warmest spring in the region since the beginning of the 21st century.
As a result of extreme temperatures seen this spring throughout Spain, the agricultural cooperative Asaja-Jaén has announced that 100% of those farmers who subscribed to weather insurance for thermal stress over the spring period have been compensated following spring temperatures that averaged 15.4 ° C, or 1.7 ° C higher than the seasonal average for the region. This coverage was provided by the cooperative in partnership with Meteo Protect, an SAP® Startup Focus Member, and the leading provider of weather risk management solutions. It was designed to protect affiliates of the Asaja-Jaén cooperative against the financial consequences of thermal stress during the critical developmental stage in the spring comprising blossoming through to fruit setting.
Asaja-Jaén is the largest agricultural cooperative in the province of Jaén, Spain. It comprises over 22,000 olive growers across the region. Jaén is considered the “world’s capital of olive oil” producing more than 600,000 tonnes, or more than 20% of the world’s olive oil. Olive trees are very weather susceptible, with thermal stress and water stress accounting for reduced quality and size of harvests. Temperature is the most important environmental factor, as olives require a cooling period for flower bud induction, and very high temperatures immediately after flowering can wipe out entire yields.
In February 2017, Asaja-Jaén launched Meteo Protect’s dedicated weather insurance platform in order to provide its adherents a means to secure fully customized weather insurance to protect them from increased costs and reduced revenues deriving from unseasonal weather. Meteo Protect provides Asaja- Jaén with a fully-branded web-based underwriting and pricing platform which leverages the SAP HANA® platform to provide completely customized insurance for any weather-related risk for the olive growers.
The insurance platform, “Olea”, allows Asaja-Jaén’s membership to select their insurance policy specifications, including geo-location, crop, coverage period, and weather parameters, then it aggregates weather-related data, analyses risks, and prices and underwrites the policy, all in real time. Index-based weather insurance is fully customized to fit the needs of each grower, designed to compensate the losses incurred through adverse weather conditions. Unlike traditional insurance, indemnification is simple and automatic, requiring no field loss assessment, deductible or adjustment.
Following the conclusion of the spring insurance coverage period to compensate farmers in case of thermal stress, Asaja-Jaén is now offering a weather insurance coverage to protect against water stress for the next critical development stage of the olive trees. Water stress affects olive trees throughout the stages of its annual vegetative cycle, including on photosynthesis, plant growth, oil production, and olive yield, but is particularly significant for the stage of slow flesh growth through to oil production initiation in the autumn period.
“Due to the limitations of traditional insurance products, olive tree farmers in the region have historically not been fully compensated when faced with the reductions in yields and quality as a result of unseasonal weather conditions,” explains Gabriel Gross, CEO of Meteo Protect. “Today’s announcement by Asaja- Jaén that 100% of their membership who subscribed to weather insurance have already received compensation following the extreme temperatures of this spring, and that Asaja-Jaén is encouraging its membership to subscribe to the next coverage period, is a very welcome confirmation that our parametric weather insurance products are effective and essential for farmers to remain competitive in today’s climate.”
Meteo Protect’s index-based weather insurance is available for all crops and in all regions. Meteo Protect also has strong international distribution partnerships with leading, financial institutions and agricultural cooperatives and associations such as France’s National Union of Potato Producers (UNPT) and one of France’s largest grain cooperatives, Axereal. The policies are underwritten and managed by Meteo Protect’s award winning platform, Vivaldi, running on SAP’s HANA technology and certified by SAP. Meteo Protect has received ample industry recognition, including most recently Celent’s Model Insurer Award for data mastery and analytics.