Pakistan’s Salaam Takaful has partnered with food security start-up Digital Dera to provide parametric-based crop Takaful coverage to smallholder farmers.
“This strategic collaboration reflects the shared vision of both entities to address the challenges faced by smallholder farmers, a vital yet often underserved segment of our economy,” the Takaful operator noted.
The initiative aims to provide a safety net for farmers who navigate the uncertainties of their profession through Islamic insurance solutions.
Digital Dera by Agriculture Republic is Pakistan’s first food security policy and rural technology innovation start-up. Its mandate is to empower smallholder farmers and rural communities to access critical climate resilient and smart agricultural inputs and integrate digital innovations that address pressing challenges in the agri-food value chain.
Salaam Takaful has been ramping up its digital investments to enhance its parametric product offerings, which are non-traditional insurance products that offer pre-specified payouts based upon a trigger event.
Last year, it engaged Dublin-based insurtech Blink Parametric to embed the latter’s parametric product across Salaam Takaful’s travel insurance policies, as well as partnered with Syngenta Pakistan on a weather and parametric index-based crop insurance program.