Insurance broker and advisory services provider WTW has developed a four-peril parametric insurance solution for Sri Lanka-based seafood company Taprobane Seafood Group.

The solution, which is said to be the first of its kind in Asia, is expected to protect Sri Lanka’s shrimp farms from weather risks.

It covers four major weather risks, specifically earthquakes, typhoons, excess rainfall and heat stress.

Leveraging the solution, Taprobane can protect shrimp farming from various risks and uncertainties, particularly the weather risks in coastal regions where the farms are usually situated.

Taprobane will also be able to receive $15m in project financing from FMO, a Dutch entrepreneurial development bank, for conducting sustainable shrimp farming.

The funding will further be used to rehabilitate abandoned farms of Taprobane and other third-party growers, invest in new farms as well as build circular tanks, hatcheries and a new processing facility.

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Furthermore, Taprobane will use the new parametric insurance to create local employment opportunities and help the growth of aquaculture in Asia, among others.

WTW alternative risk transfer solutions global head Marc Paasch said: “In the face of climate change, the growing susceptibility to natural catastrophes across many Asian markets could mean that food producers based in at-risk locations can suffer an adverse impact, affecting entire societies.

“This signifies an urgent need for innovative insurance and financing tools to better protect businesses.

“Our new four-peril parametric insurance provides an efficient and simplified solution to support businesses vulnerable to multiple weather events that are not covered by traditional insurance products in the market.”

Last month, WTW announced a new collaboration with law firm Clyde & Co to enable clients to meet climate risks.