MSIG Vietnam & Hillridge protect Vietnam’s farmers - New insurance product protects farmers against the ravages of drought.

Hanoi, Vietnam, 6 June 2023: Hillridge and MSIG Vietnam inked a partnership that sees the Australian insurtech startup enter Vietnam's agricultural insurance sector with a new product that protects farmers nationwide from the risks of drought.

The new product, powered by Hillridge's acclaimed platform and underwritten by MSIG VIETNAM insures farmers against the volatility of the southeast Asian climate.

 

The first-of-its-kind product was inaugurated at a ceremony in central Hanoi today, where Hillridge CEO Dale Schilling remarked: "2023 has proven to be a prescient year for us to launch this product, with El Niño threatening dry conditions for much of Vietnam.  We recently visited many of the coffee growing areas in Vietnam's central highlands, where farmers shared how droughts have caused their crops to fail in the past - greatly impacting their harvest, yields, and ultimately their livelihoods.  Farmers have an increasing need to insure themselves against the impact of these kinds of adverse conditions."

 

His co-signatory, Ms. Nguyen Thi Lan Phuong – Deputy General Director of MSIG Vietnam, representing the Company stated that the Japanese insurance giant, with its 14-year history in Vietnam, also sees the agriculture sector as a key area in which it can expand its already broad product portfolio.

 

“This is the first agri-insurance product that we have launched in Vietnam, where it joins our extensive portfolio of products that we offer here, including Personal Insurance such as Personal accident, Healthcare, Travel, Home and Motor insurance, and covering from liability to property insurance in various sectors. With almost 40% of the land in Vietnam used for agricultural purposes, and for sustainable growth of the sector accounts for almost 13% of GDP, I believe that this product will be the best shield for the farmers to protect what they care about.”The Vietnamese government, also representing the urgent risk that an El Nino drought represents to its agriculture sector, dispatching a delegation to Quang Nam in May to report on the risk to crops between now and year's end.  It reported a 70-80% probability of further droughts for the central province between late summer 2023 into early 2024."

 

The platform is a Vietnam first, allowing farmers to directly log-in online, generate quotes against drought in real time.  Any agricultural business susceptible to drought can buy cover through the platform. 

 

An agreed payout is determined before the commencement of the insurance, and when the policy's conditions are met, payouts are made accordingly - simplifying procedures for both the insured and the insurer.

 

The Vietnam signing is an extension of a successful partnership between the two in Schilling's native Australia, where Hillridge and MSIG Vietnam teamed up in 2021 to protect Australian farmers against adverse climate events which impact their harvests.

 

"Vietnam is particularly susceptible to the impacts of climate change," Schilling continued.   "Products like this will become increasingly an essential part of operations for Vietnam's farmers, who will ultimately need to protect their livelihoods against the increasing weather volatility that rising global temperatures, rising sea levels, increased salinization of waterways and more frequent drought is set deliver."

 

Hillridge Technology Pty Ltd (ABN 59 626 518 474) is software technology company helping address the climate protection gap – low rates of insurance protection against weather perils – in agriculture and other climate-exposed industries.

 

While many farmers struggle to protect themselves from drought and other major weather risks, they also miss out on weather derivatives and insurance that larger businesses can access. Because of this, we have made it our mission to help farmers mitigate the financial impact of poor weather on their crops or livestock. Our online platform connects farmers to insurance underwriters who can provide coverage tailored to their farms, to protect against the weather risks that most affect their farming operation. Visit www.hillridge.com.au for more information.