Salaam Takaful Limited, the largest general takaful operator and the first Islamic Insurtech in Pakistan, has built a reputation of introducing new and innovative products to the market. Besides offering all the regular general takaful coverages like motor, health, travel, fire, marine and all other usual offerings, they are committed to fill gaps with innovative products such as medical malpractice takaful, loss of employment takaful, livestock takaful and parametric based crop takaful, to name a few.
Parametric crop takaful is the newest addition to its portfolio. Crop farmers, being the backbone of Pakistan’s economy, play a crucial role in the ecosystem, and are quite prone to losses due to climate change, natural calamities and pest attacks. Salaam Takaful has picked up on their issues and has devised a weather index based solution on parametric basis backed with satellite technology and advisory service which enables them to serve farmers in record time.
Parametric crop takaful works on satellite and weather tracking technology and in the event a parameter such as excess rainfall (or absence of it) gets triggered, claim payouts are also triggered automatically to the farmers. In this way, a farmer is not required to file the claim and go through the hefty process to get the benefit. Moreover, multiple perils can be parameterized and indexed using this technology and it is highly customizable hence enable farmers to be more resilient to climate change.
Salaam Takaful has partnered with WaterSprint Ltd. to reach a bigger fraternity of farmers and to enhance the ambit of services being provided to them. Salaam Takaful and WaterSprint have jointly developed a comprehensive app to facilitate farmers on multiple fronts.
As part of its regulatory sandbox initiative to test Parametric Takaful, Salaam Takaful has initiated parametric crop takaful coverage to 61 farmers in District Rahim Yar Khan. They have collaborated with REEDS (Rural Education & Economic Development Society) Pakistan to implement this plan for the benefit of farmers. This initiative was very well received by farmers who appreciated Salaam Takaful’s step to come up with such innovative ideas and products.
A ‘coverage certificates distribution’ ceremony was held in Rahim Yar Khan. On this occasion, Mr. Umair Ismail from Salaam Takaful Limited, Mr. Naveed Alam from WaterSprint Ltd. and Mr. Shahid Saleem from REEDS Pakistan, pledged to further strengthen this partnership and work together for the betterment of farmers.