Zurich offers Italy's farmers novel insurance to help handle weather hits

By Henry Gale

April 9 - (The Insurer) - Zurich Insurance has begun insuring crops in Italy against weather, with automatic payouts to fund irrigation, disease control and other measures, its partner xFarm Technologies said.

The parametric insurance policies are designed to trigger payments within days to help farmers respond to changes in environmental conditions, which can be monitored through xFarm's app.

One of the new parametric products is triggered by dry periods and aims to reimburse the cost of water for irrigation. Another responds to higher-than-usual threats from diseases and pests, with payouts that would fund the extraordinary phytosanitary treatments needed to protect plant health.

"Italian agriculture is increasingly exposed to extreme weather events and unpredictable scenarios that put crops and profitability at risk," said Luigi De Angeli, chief underwriting officer of Zurich Italy.

Zurich has also launched a product for tomato growers, covering replanting costs in the event of a late frost. Coverage is also available for crop losses caused by water stress, whether or not irrigation systems are in place.

Matteo Vanotti, CEO of xFarm, said the policies had been "well received in the market". The tech company had started working with Zurich on parametric covers in 2023.