AAUI develops crop insurance based on extreme-weather parameters

Nusa Dua, Bali (ANTARA) — The Indonesian General Insurance Association (AAUI) is developing parametric agricultural insurance that uses extreme weather as an indicator of potential crop failure.

“We are continuing to promote it. Bali is one of the main areas targeted for developing this scheme,” AAUI chairman Budi Herawan said on Thursday on the sidelines of Indonesia Rendezvous 2026 in Nusa Dua, Badung regency, Bali.

He described parametric agricultural insurance as a strategic measure to provide farmers with financial protection against climate risks and crop failure.

Budi added that parametric crop insurance differs from conventional insurance schemes. If extreme weather has a significant impact and prevents farmers from harvesting, he said, claims can be processed using parameters agreed in advance.

Budi said the scheme was being promoted at Indonesia Rendezvous 2026, an insurance and reinsurance industry forum marking its 30th anniversary.

The forum brings together industry players, regulators, reinsurers and global ecosystem partners from 22 countries to build collaboration in support of the insurance industry’s future resilience.