TEXT: In the ever-evolving landscape of agriculture, climate change poses a significant threat to farmers worldwide. Recognizing the urgent need to address this challenge, Salaam Takaful Limited has embarked on a journey to create an ecosystem that empowers farmers to withstand the impacts of climate change.

At the core of their efforts is the introduction of parametric-based crop takaful, a groundbreaking approach that leverages partnerships and pilot programs across Pakistan. This article delves into Salaam Takaful's initiatives and key collaborations that are shaping a more resilient future for farmers.

The Parametric Crop Takaful is a disruptive product that defines coverage based on specific parameters, triggering automatic claim payouts when thresholds were met.

Throughout the year, Salaam Takaful actively collaborated with various stakeholders in the agricultural value chain to contribute to financial inclusion and resilience among farmers, particularly in the face of climate change.

Real-time satellite-based coverage, pilot projects in multiple regions, and partnerships with relevant parties, showcased Salaam Takaful's commitment to creating a meaningful impact in the agricultural sector.

Despite challenges in affordability for small to medium-scale farmers, Salaam Takaful aimed to collaborate with donors and contributors to subsidize coverage and was poised to play a leading role in shaping a national-level, technology-driven, and inclusive Islamic crop insurance scheme.

One of Salaam Takaful's flagship projects involves a collaboration with Syngenta Pakistan. This initiative focuses on supporting wheat farmers across multiple regions, including Bahawalpur, Layyah, Sheikhupura, Nawab Shah, and Lodhran, covering a total of 500 acres until mid-May 2023.

The project addresses critical weather challenges, and notably, 70 farmers have already received payouts for excessive rainfall.

Salaam Takaful recognizes the importance of extending its reach to maximize the impact of its initiatives.

Through a collaboration with Centrigo, Salaam Takaful has integrated its parametric solutions into Syngenta's 'Centrigo Front.' This platform serves as a connection point for farmers and partners, fostering enhanced productivity and sustainability.

Moreover, the inclusion of crop takaful at Centrigo centers expands Salaam Takaful's network and support services, providing a comprehensive approach to addressing farmers' needs.

In a strategic partnership with Jazz Cash, Salaam Takaful has taken a significant step towards providing nationwide Islamic insurance solutions for farmers.

The introduction of the Hybrid Parametric Crop Takaful, accessible via Jazz Cash, marks a revolutionary approach to insurance. This partnership not only prioritizes farmers' needs but also contributes to fostering financial inclusion in Pakistan.

The collaboration with Digitt Plus, an EMI approved by the State Bank of Pakistan, underscores Salaam Takaful's commitment to promoting financial inclusion in the agricultural and rural sectors through digital financial services.

Salaam Takaful is actively involved in integrating its parametric solutions into the application of Digitt Plus. This integration will streamline access to takaful solutions, furthering financial inclusion for farmers.

Partnering with Fauji Fresh n Freeze, Salaam Takaful extends parametric coverage to potato farmers in Multan and Okara. As a subsidiary of Fauji Fertilizers Company Limited (FFCL), Fauji Fresh n Freeze brings valuable expertise to the collaboration.

The pilot program specifically addresses perils such as frost, high temperatures, and rainfall, showcasing Salaam Takaful's commitment to tailoring solutions to the unique challenges faced by farmers in different crops.

In collaboration with Hamara Kissan Pvt Ltd, Salaam Takaful is making strides in offering comprehensive crop takaful coverage to sunflower growers in Khorewah (Badin). Salaam Takaful's commitment to reaching farmers at the grassroots level is exemplified by the dedicated field officers operating in Sindh.

These officers play a crucial role in implementing crop parametric takafuls, ensuring that farmers cultivating diverse crops have access to tailored Islamic insurance solutions. The on-the-ground efforts of these officers contribute significantly to promoting financial resilience among farmers.

Recognizing the importance of collective expertise, Salaam Takaful has partnered with Digital Dera and Concave Agri to offer comprehensive weather risk coverage to farmers.

This collaboration aims to enhance farmer protection by leveraging the combined resources and knowledge of all parties involved, addressing specific challenges in the agricultural sector.

As part of the Insu Resilience Global Partnership, Salaam Takaful aligns itself with a network dedicated to providing insurance solutions for vulnerable communities facing the impacts of climate change.

This partnership is a testament to Salaam Takaful's commitment to innovative and sustainable insurance, with a broader goal of building resilience in communities for a more secure future in Pakistan.

Teaming up with National Foods, Salaam Takaful is conducting a pilot project in Sindh that provides comprehensive weather-related risk coverage for tomato farmers.

This initiative specifically addresses the challenges faced by tomato farmers, contributing to a more secure future for this segment of the agricultural community.

To bolster its initiatives, Salaam Takaful utilizes ERA5 technology for weather data extraction. ERA5 offers comprehensive global climate and weather data from 1940 onwards, combining model data with observations to provide hourly estimates for weather parameters.

This technology facilitates various climate applications with daily updates, offering Salaam Takaful valuable insights to inform its parametric coverage strategies.

In 2023, Salaam Takaful has demonstrated a steadfast commitment to innovation and financial inclusion through its hybrid parametric crop takaful models, particularly in collaboration with Jazz Cash and participation in the Insu Resilience Global Partnership.

These collaborations underscore Salaam Takaful's focus on providing tailored Islamic insurance, promoting resilience, and supporting the financial well-being of the agricultural community.

As Salaam Takaful continues to forge strategic partnerships, it is paving the way for a more climate-resilient and prosperous future for farmers across Pakistan.

Copyright Business Recorder, 2024