70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Drought insurance for Vietnamese farmers launched
Phi Nhat 20:06, 2023/06/06
The Australian insurtech startup made inroads into Vietnam's agricultural insurance sector, aiming to insure farmers against Southeast Asia's volatile weather.

Hillridge and Mitsui Sumitomo Insurance Group (MSIG) Vietnam entered into a partnership on June 6 to launch a first-of-its-kind insurance product to protect Vietnamese farmers against drought.

 Delegates attend the signing ceremony of the event. Photo: Hillridge

The new product is based on Hillridge's acclaimed platform and is underwritten by MSIG. The platform allows farmers to go directly online and receive real-time drought quotes. Any farm at risk of drought can purchase coverage through the platform.

An agreed payout is determined prior to the start of the insurance. If the conditions of the policy are met, payouts are made accordingly - simplifying the process for both the insured and the insurer.

Commenting on the product's launch at a June 6 ceremony in Hanoi, Hillridge CEO Dale Schilling said: "2023 has proven to be a prescient year for us to launch this product, with El Niño threatening dry conditions for much of Vietnam."

The company has recently visited many coffee-growing areas in Vietnam's Central Highlands, where farmers shared how droughts have historically caused their crops to fail - severely impacting their harvest, yields, and livelihoods. There is a growing need for farmers to insure themselves against the impact of such adverse conditions, he stressed.

The company plans to use its product in the Central Highlands first and then expand to other regions, he told The Hanoi Times. "We have received support from the government and local partners over time, and we will consider developing the product in the central, southern, and northern regions based on our sales."

He believes that similar products will become an increasingly important part of the operations for Vietnam's farmers, who will ultimately need to protect their livelihoods against the increasing weather volatility that rising global temperatures, rising sea levels, increasing salinization of waterways, and more frequent droughts will bring.

Speaking at the event, Nguyen Thi Lan Phuong, Deputy General Director of MSIG Vietnam, said that agriculture is a key area where the company can expand its already broad product portfolio.

"With nearly 40% of Vietnam's land used for agricultural purposes and for the sustainable growth of a sector that accounts for nearly 13% of GDP, I believe this product will be the best shield for farmers to protect what is important to them," she added.

The Vietnamese Government has also recognized the urgent risk that an El Niño drought poses to its agricultural sector, and in May, sent a delegation to the central province of Quang Nam to report on the crop risk between now and the end of the year. It reported a 70-80% probability of further drought in the central province between late summer 2023 and early 2024.

RELATED NEWS
TAG: Hanoi news Vietnamnews Hillridge and MSIG cooperation the first drought insurance product launched in Vietnam
Other news
14:12, 2024/03/23
Finance ministry clears bottlenecks to pave way for stock market upgrade
One of the key measures is to allow securities companies with sufficient capacity to provide services without requiring foreign investors to have 100% of the funds before placing purchase orders for securities.
22:20, 2024/03/20
Over 60% of Vietnamese use QR codes to pay
Vietnam also leads Southeast Asia in terms of new e-wallet users.
20:39, 2024/03/18
Casinos contribute US$370 million to state budget over 5 years
The number of Vietnamese gamblers is falling.
08:22, 2024/03/13
Standard Chartered and IATA partner to launch IATA Pay in Vietnam
IATA Pay in Vietnam is powered by Standard Chartered’s Straight2Bank Pay.
17:50, 2024/03/07
Vietnam’s capital market shows positive signs: Finance Ministry
The government is planning to set up a capital trading platform for innovative start-ups.
14:29, 2024/03/06
Prime Minister urges banks to cut lending rates further
The Government leader has called for the publication of average lending rates to allow individuals and businesses to choose their banks.