Kashf Foundation | Parametric Insurance

Project Overview

WeatherWalay is supporting Kashf Foundation in the design and development of a meso-level parametric insurance product aimed at protecting vulnerable borrowers from climate and weather-related shocks. Unlike traditional indemnity insurance, parametric insurance is based on predefined weather or climate triggers — once an agreed threshold is met, payouts can be activated without lengthy loss verification processes. This makes the model particularly suitable for vulnerable borrowers who require rapid liquidity after climate shocks. WeatherWalay's role is to provide the technical weather intelligence required to design, test, and validate the insurance product.

Strategic Objective

Key Components

• Climate and weather risk assessment across Kashf Foundation's borrower footprint
• Historical weather data analysis for product design and pricing support
• Development of weather indices and parametric trigger structures
• Exposure mapping of borrower locations and vulnerable communities
• Integration of WeatherWalay's weather station and observation network
• Basis risk assessment and trigger validation
• Product structuring for meso-level insurance coverage
• Advisory support on payout mechanisms and operational workflows

Anticipated Outcomes

Why This Project Matters

As climate change drives more frequent and erratic weather patterns, low-income households and women entrepreneurs face growing risks to their livelihoods and repayment capacity. By embedding climate intelligence into microfinance systems through parametric insurance, this project supports a shift from reactive post-disaster assistance to proactive climate risk financing — enabling faster response, greater financial resilience, and stronger protection for vulnerable communities.