Cambodia is home to more than 3 million farmers, who represent almost 20% of its total population, while its agricultural industry accounts for more than 22% of the country’s Gross Domestic Product (GDP). While the agricultural industry is a critical component of Cambodia’s economy, very few of the country’s farmers have insurance policies to cover their crops. Without access to reliable crop insurance, hundreds of thousands of farmers risk becoming destitute following extreme weather events such as natural disasters, droughts, and floods. That’s why Arbol is working to bring parametric coverage to thousands of smallholder farmers across Cambodia in partnership with AGRIBUDDY.
To support this initiative, we are pleased to announce that the Chainlink Community Grant Program is awarding Arbol a grant to develop a fully decentralized parametric coverage program. As a result of this work, Cambodian farmers will be able to hedge against weather risks and protect their economic livelihoods in a trustless manner by using blockchain-based parametric coverage products facilitated by smart contracts.
One key factor holding back crop insurance adoption in Cambodia is the skepticism of many farmers as to whether centralized insurance companies will fulfill their contractual obligations. With blockchain-based parametric insurance, real-world data automatically triggers payments to policyholders once predefined weather conditions occur, meaning no party can avoid its contractual obligations. Arbol’s insurtech platform intends to make the contract creation, evaluation, and execution processes completely decentralized and transparent, enabling farmers to verify that their contracts will execute as defined rather than placing trust in a centralized entity.
Arbol aims to complete the following objectives as part of this grant initiative:Develop a custom-built Chainlink External Adapter to access IPFS data and compute parametric insurance contract payo...