The fact that the policies are based on third-party data, such as rainfall measured by satellite and ground sensors, means they are objective, thereby avoiding disputes and fraudulent claims. Eventually, the Etherisc group plans to extend the system to include crop disease affected by the weather, such as brown plant hopper, which is linked to dry conditions. Insurers are keen to add crop risk to their portfolios, says Mr Sheehan, who has attracted interest from Swiss Re and Lloyd’s. “At the moment, it is under-represented because it has not been economically viable to serve so many low-budget clients.”

https://www.ft.com/content/3a8c7746-d886-11e8-aa22-36538487e3d0