"Meteorological × financial" products will continue to expand, and Shanghai vannamei meteorological index insurance reached a deal
With the help of various financial instruments, companies can better respond to and manage the operational risks caused by climate change. Recently, the "Penaeus vannamei Meteorological Index Insurance Model" listed on the Shanghai Technology Exchange was "delisted" by the Shanghai Fengxian Branch of Pacific Essence Agricultural Insurance Co., Ltd.
Penaeus vannamei is a specialty agricultural product in Fengxian District. Its production largely depends on weather conditions. Once the weather is bad, farmers are prone to a sharp drop in income due to reduced production, just like falling into a "poverty trap."
Zhou Yu, a senior engineer at the Agricultural Meteorology Section of the Shanghai Climate Center, said that the weather factors that affect the growth of white shrimp are mainly heavy rainfall, sustained low temperatures, sustained low sunshine and typhoons. Based on the meteorological data of Fengxian District and the growth pattern of White Penaeus, the Municipal Climate Center built algorithms and models. The meteorological index insurance developed not only adapts to local climate conditions, but also divides the insurance liability period into two according to the growth cycle of White Penaeus. During this time period, three meteorological triggering conditions of rainfall, low sunshine, and low temperature were determined and their corresponding disaster thresholds.
Traditional agricultural insurance has pain points such as difficulty in underwriting, difficulty in determining losses, and high disputes. Meteorological index insurance products eliminate these pain points and use one or several meteorological factors such as wind, precipitation, and temperature as trigger conditions. When the trigger conditions are met, regardless of the Whether the policyholder is affected by a disaster or not, the insurance company will pay insurance premiums to the policyholder based on the meteorological factor index, which is equivalent to "claim settlement upon triggering."
The new product is also a boon for insurance companies. Zhu Junjie, the person in charge of Pacific Anxin Agricultural Insurance, said that general agricultural insurance often requires insurance company staff to go to the site to assess the disaster situation, while the meteorological insurance index uses meteorological data for assessment, which is more objective and accurate and avoids the complicated process of disaster assessment by multiple departments. There will also be no disputes with policyholders during a nuclear disaster. In general, nuclear disaster costs have dropped and claims settlement efficiency has improved.
This month, Penaeus vannamei meteorological index insurance will be promoted to Penaeus vannamei breeding cooperatives, breeding enterprises and farmers in Fengxian District, empowering the high-quality development of characteristic agriculture with "insurance weather".
This is the first time that the Shanghai Meteorological Department has realized the market transformation of technical service projects at the Shanghai Institute of Technology. According to the person in charge of the Science and Technology Development Department of the Shanghai Meteorological Bureau, the Shanghai Meteorological Department and the Shanghai Institute of Technology have jointly created a meteorological technology commodity trading board to continue to promote the transformation of scientific and technological achievements in the field of meteorology and allow technology to create value.
In the new field of "meteorology × finance", the Shanghai Meteorological Department will combine the sensitivity of highly weather-sensitive industries such as agriculture, new energy, aviation, and bulk commodity shipping to meteorological factors to build a high-standard and high-quality meteorological index system to promote the research and development of meteorological factors. Indices and derivatives help companies use financial instruments to effectively manage climate risks.