WRMS and WFP partner to launch first parametric insurance pilot schemes in Iraq

Weather Risk Management Services (WRMS), an agriculture and climate risk management firm, and the United Nations World Food Programme (WFP) have partnered to launch Iraq’s first parametric insurance pilot schemes, aimed at protecting smallholder farmers and micro-entrepreneurs from climate change risks.

The pilot projects are carried out in four districts, al-Hamdaniya, al-Mosul, Tilkaef, and Kerbela, through 400 smallholder farmers under drought insurance for use between December 2024 and May 2025, and 400 farmers and micro-entrepreneurs under heatwave insurance, to be available between July 2025 and September 2025.

The sum insured for drought coverage is up to IQD 700,000, while heatwave insurance provides coverage of up to IQD 1,300,000 (approximately $1,000).

The National Insurance Company of Iraq (Asia Gate Insurance Company) underwrites the policies, while WRMS serves as the calculation and technical agent, monitoring weather indices and triggering payouts accordingly.

This initiative aims to deliver swift and transparent financial relief for losses caused by extreme weather events such as heat waves and droughts. Iraq, one of the world’s most climate-vulnerable countries, frequently experiences disruptions in rainfall and extreme weather conditions, severely impacting agricultural production.

To address the proclaimed issues of traditional insurance models, WRMS and WFP have introduced a parametric insurance model which automates payouts based on predefined weather conditions—eliminating the need for traditional claims filing and expediting financial assistance.

The insurance solution leverages satellite and weather station data to enhance risk quantification and payout accuracy. Beyond immediate financial relief, the program also seeks to mitigate economic damage from climate-induced disasters and support long-term food security in affected regions.

This launch marks a significant advancement in climate risk financing for Iraq. By integrating cutting-edge climate modelling and remote sensing technologies, WRMS and WFP demonstrate the potential to scale this insurance framework across the region, extending protection to more vulnerable communities.

Anuj Kumbhat, Co-Founder and Chief Executive Officer, WRMS, commented, “At WRMS, we are committed to pioneering climate-smart insurance solutions that empower vulnerable communities. Our partnership with WFP in Iraq is a transformative step in financial inclusion and climate resilience.

“Using parametric insurance, we guarantee that smallholder farmers and micro-entrepreneurs get a share of immediate and transparent financial assistance, which enables them to cope with climate shocks. We are hoping to be able to scale up this effort and bring its benefits to greater at-risk populations.”

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