Technology Solutions for Parametric Insurance - 11th International Microinsurance Conference - Munich Re Foundation
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Develop and improve climate (index-)insurance products
combining technical expertise and local knowledge
Technology Solutions for
Parametric Insurance
11th International Microinsurance Conference
November 2015
Content
About CelsiusPro
KILP Kenya
Climate Insurance Fund (CIF)
CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com 2
About CelsiusPro
We offer:
Expertise in structuring and originating tailored index products mitigating the
effects of adverse weather, climate change and natural perils.
Our proprietary online platform for risk modeling, pricing, execution, transaction
lifecycle management and reporting allow us to model, price and transact a large
number of transactions efficiently at low cost
Software to enable insurers to efficiently service clients with parametric products
Customized solutions for multinational to small cap clients
We are:
A privately held Swiss company, founded in 2008
Winner of the 2009 Swiss Insurance Innovation Award
Winner of the 2014 Australian Insurance Industry Awards (Innovation of the year)
Manager of the Climate Insurance Fund from KfW 2015-2020
Partner of the World Bank Group (IFC) for index insurance
CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com 3
How do we work?
We use big data from satellites, ground measurement devices and additional data
providers to design smart products and give climate smart advice.
Data Analysis Insurance Solutions
Advice
Feedback loop to improve products and models.
CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com 4
CelsiusPro Service Model
Risk Analysis & Solution Design
Clients: Governmental Agencies,
NGO’s, Cooperatives, Insurers
Catastrophe and Plague Alerts
Insurance Products & Platform
Clients: Governmental Agencies,
Clients: Insurers
NGO’s, Cooperatives, Insurers
Service
Model
Weather Forecast
Clients: Governmental Agencies, Risk Transfer
NGO’s, Cooperatives, Insurers Clients: Insurers / Re-Insurers
Tactical Decision Making Support
Clients: Governmental Agencies, NGO,
Cooperatives, Insurers, Farmers
CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com 5
Content
About CelsiusPro
KILP Kenya
Climate Insurance Fund (CIF)
CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com 6Kenya Livestock Insurance Program (KLIP)
The Ministry of Agriculture Livestock & Fisheries in Kenya plans to use
insurance to cushion Kenya’s livestock keeping communities against drought
related loss of livestock;
KLIP has been developed with support from World Bank, ILRI, and public
and private sector stakeholders;
It is a macro-level insurance scheme for asset protection;
Forage availability as determined by satellite data will trigger payout;
National government intends to provide (as a start) 100% premium support
for 5 tropical livestock units (TLU) belonging to vulnerable pastoralists;
The insurer and beneficiaries will make arrangements for top up and
voluntary cover;
The insuring company will make payouts directly to the accounts/mobile
payment systems of the beneficiaries when there is a trigger.
Source: Presentation: Kenya Livestock Insurance Program by Vincent Githinji (MALF Kenya) 09.06.2015
CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com 7Kenya and Agriculture
Map of Kenya showing arid and Livestock Wealth
semi arid districts
14 target ASAL pastoral counties have
9.140 M cattle= 52.3%
13.462M sheep= 78.6%
21.024M goats= 75.8%
2.962M camels= 99.7%
This is a huge livestock wealth
Source: Presentation: Kenya Livestock Insurance Program by Vincent Githinji (MALF Kenya) 09.06.2015
CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com 8Source: Presentation: Kenya Livestock Insurance Program by Vincent Githinji (MALF Kenya) 09.06.2015
CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com 9Technological aspects of KILP
CelsiusPro is the calculation agent for KILP and therefore responsible of calculating the
NDVI values per Insurance unit used to calculate the risk and the payouts.
Below a screen shot for the selection of the Insurance Units.
Outlined in red are
the Insurance
Units for the KLIP
for the pilot.
It is planned that
further Insurance
Units added in
future.
CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com 10Historical NDVI Values
The graph shows
historical 10 day NDVI
values for the insurance
unit Kalapat Plains as
selected on previous
slide. Clearly visible the
seasonality.
The graph shows the
anomaly of the 10 day
NDVI values compared
to ‘normal’.
CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com 11Content
About CelsiusPro
KILP Kenya
Climate Insurance Fund (CIF)
CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com 12The Climate Insurance Fund (CIF)
The overall objective of the Climate
Insurance Fund is to contribute to the
adaptation to climate change by improving
the access to and the use of insurance
in developing countries. The specific
objective of the fund is to reduce the
vulnerability of micro, small and medium
enterprises (MSME) as well as low-
income households to extreme weather
events.
CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com 13Facts and Figures
Investment Fund Target Countries Investment Range Technical
Size Assistance
All ODA* 500’000 to
60 million USD countries, incl. all
5 million USD 17 million
African USD for all
for loan or equity per project
countries projects**
investment
*ODA: Official Development Assistance List
**Including 6 million USD for premium subsidy
CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com 14How does CIF work?
USD USD
60mio 11mio
Loan / Equity Investment Technical Assistance
Institutions and initiatives with the aim to introduce or
expand climate insurance in the target countries.
Local Insurer Distribution channel (MFIs*, Input Providers,
MGAs*
Mobile provider)
CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com 15
*MFI: Microfinance Institution, MGA: Managing General AgentTechnical Assistance Facility
Technical Assistance Services Description
Study to promote (parametric) climate insurance products covering:
INSTITUTIONAL SERVICES
1) Feasibility Study risk region, risk period, key crop, livestock, key climate risks, suitable
distribution model
2) Legal Services Regulatory framework, policy wording, licensing in respective country
Managing the implementation of climate insurance, business
3) Project Management
planning, budgeting
Training on governance structures, rules, processes, responsibilities,
4) Corporate Governance
code of conduct, transparency; board representation
Sourcing relevant weather, climate, remote sensing, yield and
5) Data Sourcing
NatCat Data
TECHNICAL SERVICES
6) Insurance Design Design and price an (index for parametric) insurance product
Educate the Investee Staff about (index based) insurance products
7) Education of Investee Staff
(and about the use of weather insurance platform(s))
Support the Investee in the preparation of marketing material and
8) Marketing and Distribution Support
advise the distribution of the product on the ground
Provide booking platform(s) for the Investee. Customizing the
9) Operations Support & Platform
platform for country, user, language, products etc.
FINANCIAL
LITERACY
10) Education of End Clients Educate the end clients of the insurance product on financial literacy
CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com 16Contact
Mark Rüegg MBA CFA
CEO
CelsiusPro AG
Seebahnstrasse 85
8003 Zürich
Phone: +41 44 205 99 11
Mobile: +41 78 781 88 00
Fax: +41 44 205 99 19
Mark.rueegg@celsiuspro.com
CelsiusPro AG
Seebahnstrasse 85, CH-8003 Zürich, t: +41 44 205 9910 f: +41 44 205 9919, info@celsiuspro.com 17You can also read
