Management Consulting
Aon
Full Credential Description
**Case Study: Brewing Climate Resilience for a Global Coffee Leader** The global coffee industry faces significant challenges due to climate change, particularly in Central America, where coffee yields may drop by nearly 90% by 2050 due to rising temperatures and erratic rainfall. This situation is exacerbated by sourcing from limited regions, which heightens supply chain vulnerability. Consequently, commodity prices for coffee have doubled, putting additional pressure on producers. To address these challenges, Aon implemented a data and analytics-driven solution by developing a dual-trigger parametric insurance coverage for a global coffee company operating in Latin America. This innovative approach utilizes rainfall, soil moisture, and satellite data, potentially linked to subsidies. The solution not only stabilizes grower income but also promotes regenerative farming practices that align with environmental, social, and governance (ESG) goals. **Case Study: Empowering India's Rice Farmers: Scalable Risk Transfer through Public-Private Partnerships** In India, rice farmers are grappling with erratic rainfall and yield uncertainty, compounded by limited insurance options and tight profit margins that make financial protection inaccessible for many. Government-backed loans necessitate risk mitigation to ensure planting confidence and income stability. Aon responded by designing a large-scale parametric insurance program triggered by rainfall and yield thresholds. This program, supported by government initiatives, enhances adoption and affordability, ensuring timely payouts that stabilize farmer income and build trust in the insurance system. This model not only provides immediate financial relief but also serves as a replicable framework for climate-smart agriculture, empowering farmers to navigate the uncertainties posed by climate change.