Blue Marble Microinsurance, a startup that provides socially impactful, commercially viable insurance protection to the underserved, and coffee company Nespresso have launched a pilot weather index insurance program for smallholder coffee farmers in Colombia.
Blue Marble is a UK corporation owned by nine insurance entities that include: American International Group, Aspen Insurance Holdings, Grupo ASSA, Guy Carpenter & Company together with Marsh & McLennan Companies, Hamilton Insurance Group, Old Mutual Emerging Markets, Transatlantic Holdings, XL Insurance (UK) Holdings, and Zurich Insurance Company.
According to Blue Marble and Nespresso there is an immediate need to establish innovative solutions that help to ensure coffee producers have long-term security. Smallholder coffee farmers are subject to immense risk as unpredictable and adverse weather conditions can have detrimental effects on coffee crops. There is a lack of suitable insurance options available to these farmers.
Nespresso and Blue Marble are therefore working together to enhance the welfare of coffee farmers and address supply chain risk. This pilot weather index insurance program has commenced with 1,975 farmer participants across 5,724 hectares, belonging to the farmers of the Aguadas and Norte de Caldas cooperatives in Caldas, Colombia. The program is a co-creation of farmers, Nespresso coffee specialists and Blue Marble insurance experts. It provides bespoke coverage for excess rainfall and drought during the developmental stages in which coffee is most vulnerable to climatic shocks.
“Our changing climate poses serious threats to the livelihoods of coffee producers, especially smallholder farmers,” said Joan Lamm-Tennant, chief executive officer and founder of Blue Marble. “Insurance provides these farmers with critical safety nets, and it can have a lasting impact. Blue Marble is proud to work with Nespresso to help mitigate risk and create value in the lives of these farmers.”
“Having an insurance solution that protects our members from the devastating effects of climate change is critical for the cooperatives,” said Cesar Julio Díaz, head of the Aguadas and Norte de Caldas cooperatives. “It allows coffee growers access to economic resources in the form of insurance payouts that will help them re-establish their crops, making them productive and able to continue with their agronomic activity.”
Blue Marble Microinsurance, Nespresso, insurance, coffee, farmers