Washington, DC and London, United Kingdom – The Demex Group, creators of a first-of-its-kind platform for analyzing, pricing, and transferring climate-linked risks at scale and Global Parametrics, provider of parametric solutions for natural hazard and extreme weather risk in emerging economies, today announced 2 new programmes enabling financial protection for those traditionally underserved by formal risk transfer. The collaboration harnesses Demex’ core technology to develop protection for smallholders in both the Philippines and Vietnam, in order to combat climate risks and enhance community resilience.
In the Philippines, within a consortium led by Global Parametrics and including CLIMBS, IBISA Network and the International Centre for Tropical Agriculture (CIAT), the initiative is developing a novel new protection for agricultural cooperatives.
The overall objective of the product offering is to help cooperatives finance agricultural entrepreneurs against hydrometeorological risks, in order to build resilient and sustainable communities. The consortium provides a meso-level solution; for the initial transaction, the product will be offered to four savings and credit cooperatives and one agricultural cooperative affiliate, with the aim to rapidly scale for coming seasons.
Coffee production provides a livelihood for 2.6 million people in Vietnam, including over 600,000 smallholder farmers. Climate change threatens to become an environmental disaster for farmers due to decreased water availability, pest and disease attacks and more frequent extreme weather events. Global Parametrics deployed the Demex Solutions Center to structure a parametric extreme rainfall protection for ECOM coffee group in the Central Highlands of Vietnam. This programme is the first of its kind whereby a global trading entity is supporting its smallholder producers with a non-subsidised climate resilience product, acting as a benchmark for future programs.
Global Parametrics and Demex are improving coverage for the most remote locations with unparalleled quick, efficient, and comprehensive coverage across a range of perils including excess wind, drought, flood, and tropical cyclone.
Alin Radu, Head of Product and Structuring for Global Parametrics said, “Demex enables us to rapidly price and settle high volumes of transactions. This gives us the capability to easily replicate, scale and enhances our ability to operate anywhere in the world.”
Steve Bennett, Head of Product for Demex said, “We’re excited to work with Global Parametrics to create secure and scalable solutions that are specifically designed for hyper-local climate safeguards.”
Hector Ibarra, Chief Executive Officer for Global Parametrics said, “We are delighted to partner with Demex who have not only furthered our offering but also boosted our ability to provide innovative climate protection and resilience solutions to the underserved. We look forward to continue to work together in supporting this commitment.”
Ed Byrns, Chief Executive Officer for Demex said, “Global Parametrics’ focus on traditionally underserved communities is an important part of the ecosystem for climate resilience. This initiative is an important step toward our Demex mission to make it simple for businesses to financially protect themselves from climate-linked operational risk at a global scale.”
About The Demex Group
Demex technology is a first-of-its-kind platform for analyzing, pricing, and transferring climate-linked risks at scale. With increasingly variable weather conditions, Demex offers businesses the ability to manage risk and create opportunity.
Demex enables businesses to identify and implement climate risk transfer solutions by seamlessly integrating the weather data, cashflow modeling and channel partners required to provide coverage that’s tailored for each customer.
Demex shields customers from the financial surprises of volatile weather so that they can grow their businesses. Learn more at www.thedemexgroup.com
About Global Parametrics
Rethinking risk to build more inclusive resilience: Extreme weather events and natural hazards are being intensified by climate change, increasing the frequency and intensity of economic shocks which disrupt business and threaten livelihoods.
Established in 2016, Global Parametrics is a specialty provider of parametric solutions for natural hazard and extreme weather risk in emerging economies. Working with the private, public and third sector, GP uses its innovative climatic, seismic and financial risk modelling to rethink resilience for a new era of risk. Learn more at: https://globalparametrics.com/