A Drought Insurance Premium Estimator and Educational tool
This online tool has been developed to provide insights into the risk of drought in Queensland. The tool allows farmers to estimate the cost of parametric drought insurance that could help financially protect themselves against drought risk. The tool allows users to click on their location and get an estimate of what drought insurance could cost. The months and level of insurance can also be set.
In collaboration with the
Preliminary policy structure: If rainfall (in millimetres) is below a specified attachment over a given period of months then a pre-agreed payout occurs. The premium will increase proportionally with drought risk and will vary by location. Months and locations with higher drought risk will therefore tend to have higher premium costs.
Instructions:- Click on the map to see an estimate of the premium for an area of interest. Premium estimates are similar for locations in the same region.
- Select an attachment level (i.e. when insurance starts to payout).
- Select the limit (i.e. when insurance payouts stop).
- Enter a tick value (i.e. the size of the payout for each millimetre of rainfall below the attachment).
- Tick the months that you want the insurance estimate to cover.
