CIBEST IPB University and Zurich Syariah Promote Risk Literacy and Agricultural Protection
Climate change makes crop failure risks increasingly difficult to predict. Amid these challenges, the Center for Islamic Business and Economics Studies (CI-BEST) at IPB University is promoting risk literacy and agricultural protection innovation through a public lecture with Zurich Syariah.
The Rector of IPB University, Dr Alim Setiawan Slamet, expressed his appreciation for the initiative of CIBEST and Zurich Syariah, which not only combines financial education and innovation but also prioritizes environmental sustainability.
“IPB University consistently supports agricultural protection efforts, including through the creation of collaborative spaces such as internships, capstone programs, and joint research opportunities,” he said while welcoming more than 150 participants who attended Zurich Syariah Goes to IPB University some time ago.
Satria Nugraha, Manager of Strategic Distribution Initiatives at Zurich Syariah, said that historically, agriculture has been one of the sectors most vulnerable to climate change and weather volatility. Therefore, his company is committed to providing modern protection solutions for this sector.
“Innovations such as parametric insurance are part of Zurich Syariah’s efforts to strengthen farmers’ resilience while supporting the sustainability of the national economy, which relies on the agricultural sector,” he said.
During the main session, Auralusia Rimadiana, Director of Zurich Insurance Indonesia, stated that Weather Index Parametric Insurance is designed as a fast, transparent, and data-driven protection solution.
“Unlike conventional insurance, parametric insurance pays claims based on predetermined weather parameters, such as rainfall that exceeds or surpasses a certain threshold,” she said.
She continued that weather data is collected via satellite and monitored automatically, so that when parameters exceed the agreed limits, claims can be paid immediately without a formal application process.
“This mechanism provides efficiency while ensuring that farmers can immediately receive assistance to continue their productive activities,” said Auralusia.
He also highlighted the success of the Café Seguro program in Colombia, which has protected more than 12.650 coffee farmers and become a global benchmark for the development of parametric insurance. In Indonesia, Zurich Syariah has protected more than 17.000 farmers in Bener Meriah (Aceh), Tanggamus (Lampung), Sigi and Poso (Central Sulawesi), and Kolaka (Southeast Sulawesi).
The discussion was moderated by Rahmat Yanuar SP., MSi. Secretary of CIBEST IPB, with enthusiastic participation from students who asked questions about the use of satellite data, determining weather parameters, and opportunities for developing insurance for other commodities.
This program is expected to serve as a starting point for broader collaboration between academia and the insurance industry in addressing the challenges of climate change and associated risks. (*/Rz)(IAAS/RWA)
