Handling agricultural insurance claims during Covid-19 lockdown

30.11.2020 168 views
Traditionally, claim estimates in crop insurance involve travel, farm visits, joint inspections, and closer interaction with the farmer. But now, with strict health and safety measures in place, these activities are limited. So, what happens when a loss adjuster is unable to visit a farm to verify a claim? Fraud detection with GreenTriangle Earlier this year, a farmer made a claim on his crop insurance policy, claiming losses on wheat crop due to frost. However, because of the lockdown, quarantine and numerous claims to handle, the loss adjuster was unable to visit the farmer's fields before the harvest and therefore could not verify the claim on time. The loss adjuster used GreenTriangle’s platform and compared the claimed fields with neighboring fields and declared residual yield with modelled yield range provided by GreenTriangle. He was able to identify two things that didn't match the farmer's claim: there had been no occurrence of frost for any of the claimed fields and the vegetative development as per the mobile app’s charts was heterogeneous but only slightly below normal levels. Figure 1: Vegetative development of the insured fields slightly below normal vegetation health in April and May (red: low vegetation health, green: high vegetation health) This was easy to spot as each insured field gets its own timeline that shows:
  • historical and up to date information about the field condition and its vegetative health, including samples;
  • the range of potential yield levels;
  • the occurrence of each insured peril: drought & flooding; hail; heatwaves, early and late frost.
According to the weather and remote imagery records, a near to total loss claim was unjustified. The heterogeneity of the field was not due to any frost event. The insurer's response was instant: the GreenTriangle's PDF report of the policyholder’s farm was generated and attached to the claim file, while following the requirements attributed to travel restrictions and social distancing. This kind of situations could be spotted several times across GreenTriangle's insurance portfolios. Figure 2: Heterogeneous vegetative health across the insured field (red: low vegetation health, green: high vegetation health) Peril Identification Remote monitoring software has benefits beyond the detection of erroneous insurance claims. It can also help adjusters differentiate the impacts of adverse weather events and diseases on the crop’s yield. In July 2020, sugar beet fields in central Europe were suffering from both beet yellow virus (BYV) and drought. Loss adjusters were struggling to quantify the individual impact of the disease – which was uninsured, and drought – which was insured. Figure 3: Vegetative development of the sugar beet field showing a recovery in September after the significant rainfall events (red: low vegetation health, green: high vegetation health) If the differentiation between the insured and uninsured peril is not properly made, either the farmer or insurance provider would lose on the claim payout. Unable to visit the farm for several times to assess the dynamics of the crop development, the loss adjuster turned to remote sensing imagery. By examining vegetation health and soil moisture on a weekly basis before and after rainfall events, the impact of the drought was separated from the impact of the virus. Thus, the loss adjuster was able to calculate insured losses more accurately and authorize payout entitled to the policyholder. The future of the digitized agriculture insurance claim process The digitized agriculture insurance claims process offers great promise. Such a technology can facilitate accurate fraud detection, objective sampling, claims verification, provide remote yield estimates, reduce loss assessment costs, etc. Beyond these benefits, the digitalization of field data collection process has a great potential to pave the further way to individual field level risk analysis and insurance cover designs. Year 2020 will certainly be remembered as the year when COVID-19 changed the world, affecting the insurance business towards accelerated digital transformation. If you need more information or if you have questions, please contact info@green-triangle.com or visit the website www.green-triangle.com. The article sponsored by GreenTriangle (www.green-triangle.com)
26.09.2022

Canada - Crop insurance covers quality loss

The Saskatchewan Crop Insurance Corporation (SCIC) provides coverage against crop damage caused by varying growing and weather conditions. Under the Crop Insurance Multi-Peril Insurance Program, customers are covered against both yield and quality loss. 

26.09.2022

India - No funds for rodenticides, Bathinda farmers stare at crop loss

The Agriculture Department has not provided rodenticides to the farmers in the past two years. As a result, the paddy planted through the DSR method, wheat and sugarcane crop has suffered substantial damage to due to the rodents (rats).

26.09.2022

Greece - ‘Perfect’ grape season foiled by tropical weather near the end

While cultivating this season’s grapes in Greece, everything was set out to be the most perfect season. However, things took a turn later in the season, George Saliaris-Fasseas, founder of Greek Grape Company, explains: “Greek Grape Company cultivates mainly IFG varieties.

26.09.2022

India - Farmers fear crop loss due to waterlogging in Haryana mandis

Waterlogging in grain markets of Haryana due to incessant rains has added to the worries of farmers as they fear loss of their agricultural produce lying in the mandis.

26.09.2022

New banana fungus is rapidly spreading across the globe

A new banana fungus is rapidly spreading across the world. The fungus hit Africa ten years ago, but it is now spreading, according to a genetic study conducted by Wageningen University & Research (WUR) and Utrecht University. According to Plant Pathology Professor Gert Kema and his colleagues, the disease poses a threat to Africa’s food security.

26.09.2022

Spain - Valencia's kaki harvest is expected to fall by more than 55%, generating more than €50 million in losses

"The forecasts for the kaki campaign indicate that the harvest could decrease by 55%. This means producers could stop earning more than 50 million euro in relation to the last year, which wasn't a particularly good year. In June, producers expected a 35% decrease in production.

26.09.2022

Summer heat lowers European tomato production by 14%

It has been a sunny but scorching summer in Europe. That affected the tomato market. High temperatures led to a 14% drop in production. That is according to a September report by the Flemish expert working group and fruit and vegetable management committee.

26.09.2022

India - Relief based on extent of crop loss

Referring to the incessant rain that the state endured recently, causing time serious damage to the agriculture sector, former chief minister BS Yediyurappa on Saturday said the government will suitably compensate for the  crop loss.