European Agri-Insurtech Startup IBISA Raises Seed Funding From Indian Capital Ankur

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Agri-insurtech startup IBISA has announced that Ankur Capital, a leading India-based early-stage venture capital fund focused on transformative technologies in deep and climate tech, has joined its seed round. The Luxembourg startup Insurtech IBISA is on a mission to provide players in the agricultural value chain with innovative weather insurance solutions.

Founded in 2019, IBISA started operations in India with the DHAN Foundation to provide parametric drought insurance in Tamil Nadu. Fast forward so far, IBISA is expanding its operations in India with operations in Odisha, Karnataka, Telangana for coverage against excessive rainfall, excessive wind speed and drought. They also opened a head office in February 2022 in Bengaluru.

70% of the world’s food supply comes from smallholder farmers and over 50% of India’s workforce works in agriculture and related sectors which contributes only 20% of India’s GDP. With climate change occurring on a large scale, most of these smallholder farmers are vulnerable to unforeseen climatic conditions that damage crops. It’s not that there aren’t insurance solutions to address this, but there is a huge gap between the cost of insurance and the willingness to pay premiums and the suitability of insurance products. existing ones and the needs of farmers.

Speaking of investment, Ritu Verma, partner at Ankur Capital mentioned, “Unavailability of data has hampered the growth of the agricultural insurance industry in developing countries for decades. Legacy crop insurance involved lengthy manual processes, making them impractical for developing markets where small farms are the norm, and parametric insurance was never viable due to lack of sets detailed climate data. We are delighted to partner with IBISA to transform the scale of parametric insurance options available in countries like India with a large addressable market.

“Agriculture is an integral part of our societal and economic infrastructure. The impact of the war in Ukraine on food prices and food security seriously highlights the importance of global agriculture. And yet, the support is not there. With IBISA, we sought to create a technology that would help reduce costs for players active in the field of insurance. Finding a way to responsibly protect farmers from extreme weather conditions, dramatically reducing distribution and operating costs, making it affordable for many groups in the value chain. And this is no small challenge. But we are already seeing results. A small proof of our success is the fact that when the Philippines was hit by Typhoon Odette on December 21, our insurance partner, CLIMBS, was able to make payments within 10 days after the typhoon hit the Philippines with IBISA’s weather protection cover in place. said Maria Mateo Iborra, CEO and co-founder, IBISA.

Apart from India, IBISA operates in New Zealand, Guatemala, Senegal, Philippines and other African countries. With strong insurance and reinsurance partnerships in different geographies and tailored products for lack of rain, excessive rainfall, extreme temperatures, excessive wind speed and cyclones, IBISA is able to meet the needs different actors in the agricultural value chain.

So whether there is a risk related to failures, securing the supply chain, strengthening links with farmers or increasing sustainability practices in agriculture, insurance solutions against severe weather acts as a tool to mitigate unforeseen climate risks and empower organizations and ultimately farmers to increase their resilience against climate change.

The company is also in discussions with a number of large lenders, food processors and Agritech customers in different geographies to mitigate their credit risk in the event of default, reduce their supply chain risks and increase their risk management practices. sustainability in agriculture and strengthen farmers’ links with smallholder farmers in India and abroad.

If you see climate risk as a threat to your business and value chain and want to grow in parametric climate insurance, contact us at [email protected] to discuss specific use cases.

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