Innovative Parametric Weather Insurance on Satellite Data in Agribusiness

Weather Resilience against adverse meteorological events became a big issue in several sectors of the economic system. Innovative tools can complement traditional strategies and speed up recovery. In the insurance industry, the parametric coverages based on the use of the bioclimatic parameters correlated to the client's loss, represent an interesting and alternative risk solutions. Nevertheless, the risk that the index is measured with spatial distance to production location, i.e. the basis risk, can hinder the market diffusion process. The real time data collected by satellites can mitigate the basis risk and combined with main features of the Agribusiness in the personal parametric weather insurance lead to an adequate risk management.