AN INSURANCE payout under an “anticipatory” finance agreement is helping small-scale farmers in Nepal before drought fully takes hold.
The $100,000 payment is the third secured by the charity Tearfund through its parametric insurance scheme, which releases funds before the full effects of climate-related events such as drought are felt. The payout is triggered by drought conditions measured through satellite data used to assess water availability for crops.
Tearfund described the insurance as “a significant step forward in anticipatory humanitarian action”.
The first two payouts went to chilli farmers in Pakistan and smallholders in Malawi (News, 21 February 2025; 27 June 2025).
In Nepal, the funding will support 671 households in the Bajura district with food packages, drought-resistant seeds, and tools. It is also paying for the installation of water-collection tanks for small-scale irrigation projects.
Tearfund’s country director for Nepal, Pranaya Pandey Chhetri, said: “The gap between the cost of global disasters and the finance available to respond to their impact is growing.
“We are increasingly concerned about hunger and food scarcity. Cycles of flooding and drought makes farming extremely challenging across Asia, including Nepal, and conflict is disrupting supply chains for agriculture globally. This insurance innovation brings vital finance to support those on the front lines of the climate crisis. This payout is helping people keep hope alive through a desperate food shortage.”
Tearfund is working with the risk-management company Global Parametrics and the not-for-profit organisation Humanity Insured to provide the new source of financing, which is intended to reduce the impact and cost of humanitarian crises.
The chief executive of the CelsiusPro Group, the parent company of Global Parametrics, Mark Rüegg, said: “This is a powerful example of how parametric risk-transfer solutions can be used in a very practical way. Fast, pre-arranged financial aid can make a real difference to families struggling to maintain food security, build resilience, and avoid being pushed further into poverty. This is the kind of practical support CelsiusPro Group wants to deliver to climate-vulnerable communities, and it is a privilege to play a part in work that has such a clear impact.”