Course Introduction
About the Session
Climate change is significantly increasing risks for farmers and rural communities, but at the same time creating a new insurance market. Agriculture in many regions remains underinsured — for instance, in Thailand, insurance penetration is very low compared to the sector’s size. This gap is both a challenge and a major business opportunity for insurers.
Weather Index Insurance (WII) offers a practical and scalable solution. By relying on weather data such as rainfall, temperature, or wind speed, payouts are triggered automatically once thresholds are reached. This reduces the need for costly field assessments, speeds up claims, and builds trust with policyholders. For insurers, it ensures lower administrative costs, clearer risk modeling, and faster settlement cycles.
The approach also allows product diversification, with covers for drought, floods, heatwaves, cyclones, and even vegetation or soil-moisture monitoring. Beyond agriculture, the model can expand into energy, logistics, and tourism — sectors that increasingly face weather-related risks. Technology acts as the key enabler: satellites and high-frequency data strengthen accuracy, mobile technology widens distribution and premium collection, while blockchain enables transparent and low-cost claim settlement. Together, these innovations make WII attractive to insurers, reinsurers, and investors.
This awareness workshop is designed to build a shared understanding of WII among insurers and key stakeholders. It will highlight concepts, product features, and benefits, and demonstrate how WII can strengthen the resilience of farmers, businesses, and communities against climate risks.
About the Speaker
Mr. Ravinda Herath, ACII, MBA (UK), is a Chartered Insurer with over 15 years of expertise in insurance innovation, risk modeling, and climate-resilient solutions. He currently works as Product Designer at IBISA SA, Portugal, where he develops cutting-edge parametric and weather index insurance products. Ravinda previously served as Assistant General Manager at Sanasa General Insurance in Sri Lanka, the country’s largest microinsurance provider, where he spearheaded climate and agricultural insurance programs. He has also collaborated extensively with leading international organizations, including the IFC, ILO, GIZ, ADB, and UNDP, on projects aimed at expanding financial protection for vulnerable communities. With his deep knowledge of insurance markets across Asia and a strong background in product development, Ravinda brings unique insights into how insurers can unlock the potential of Weather Index Insurance for both social impact and business growth.
