Liberty Mutual Reinsurance (LM Re), part of Liberty Mutual Insurance, has introduced a new parametric agriculture insurance product for Colombian farmers.  

The product is designed to offer financial protection against climatic risks and is launched in collaboration with XS Latam – part of XS Global Group – and SFA CEBAR. 

The insurance solution, developed by LM Re, incorporates the expertise of Floodbase, a parametric flood platform, and EarthDaily, which specialises in geospatial data and analytics for the agriculture sector.  

The product aims to enhance the resilience of Colombian agriculture by providing farmers with indemnity against severe weather events that could lead to the loss of their land, the company said.  

Building on a previous drought protection pilot, this product has been expanded to cover additional perils including floods and addresses the issue of cloud cover interference with satellite data. 

It features trigger mechanisms that facilitate prompt financial compensation to policyholders when certain conditions are met, the company added.   

LM Re has developed a method to deliver a consistent daily basis measure of the index, despite cloud cover. 

LM Re agriculture and parametrics head Jean-Christophe Garaix said: “With farmers in Colombia routinely relying on annual loans to farm their land, should adverse weather cause a herd loss, many must sell land to repay the loan. This product is designed to mitigate that risk, making farming much more resilient. It also simultaneously reduces the risk banks face in offering finance, creating the potential for cheaper loans, which will further help support resilient farming in Colombia.”      

Earlier in the month, Liberty Mutual Holding Company reported attributable net income of $1.02bn for the first quarter of 2025, a decrease of 33.2% from $1.5bn in the same period of 2024.   

The company’s revenues for the quarter remained flat at $12.48bn.