An innovative, market-proven product against drought and excess rainfall.
Advanced weather risk management tool that helps safeguard your income against both drought and excess moisture
Tracks the balance between precipitation (rainfall) and evapotranspiration (moisture from soil and plants) over a defined period / season
We find the historical norm in the area and measure how much dryer or wetter the conditions could be against the average
By cross-referencing historical losses with the WBI, we can find the level at which yield loss occursand set the trigger thresholds accordingly
THE FORMULA
↓ PRECIPITATION
↑ EVAPOTRANSPIRATION
↓↑ WATER BALANCE INDEX
Low Water Balance Season Cover Payout for Deficit Water Balance
If the average daily water balance is lower than the trigger amount of water balance, the policy holder will receive a fixed amount for each mm of water balance shortfall up to the cover limit.
EXAMPLE
Cover period: May 1st – 11th
Trigger: < 5mm
Payout per mm: USD 10,000
Cover limit: USD 100,000
During the cover period, the independent data provider reports daily rainfall and daily evapotranspiration that lead to 1.9mm of average water balance
PAYOUT PROFILE
COVER APPLICATIONS
𝗈 Seasonal Droughts
𝗈 Excess or deficit rainfall during emergence
𝗈 Preseason moisture
𝗈 Excess Moisture at seeding
𝗈 Wet Harvest
𝗈 Rainfall Deficits during booting/heading/flowering
THE EXPOSURE
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WATER BALANCE INDEX ©
The average of the daily water balance over a risk period:
Positive WBI (>0):
More precipitation than evapotranspiration
= Wet Conditions, water surplus (flood potential, soil moisture increase
Negative WBI (<0):
More evapotranspiration than precipitation
= Dry Conditions, water deficit (drought risk, soil moisture depletion)
Zero WBI (~0):
Balanced conditions (water input and output close to equal)
Water Balance value can be read in the X-axis as either
0 (normal conditions)
+1, +2, +3 (wet conditions)
-1, -2, -3 (dry conditions)
On the Y-axis we will calculate the percentage of payout to the client depending on severity of drought.
DATA PROVIDER
ERA5 provides hourly estimates of a large number of atmospheric, land and oceanic climate variables.
The data covers the Earth on a 31km grid and resolves the atmosphere using 137 levels from the surface up to a height of 80km.
CelsiusPro extracts the Hazard data from the ERA5 data source for the defined periods and builds an index for each period.