Tackling Heat Stress: A New Era of Protection for Dairy Farmers

As the global climate continues to intensify, so do the risks for those in agriculture, particularly in the US dairy industry. With rising temperatures during the summer months, dairy farmers face an increasingly volatile environment that threatens both the health of their livestock and the financial stability of their operations.

To address this pressing issue, we are pleased to launch our new parametric insurance product in collaboration with AIR Parametric, designed to protect dairy producers from the impacts of heat stress - a risk costing the US livestock industry an estimated $2bn annually.

The Growing Threat of Heat Stress in Dairy Farming

From May to October, soaring temperatures and humidity can devastate dairy cattle, leading to illness, reduced milk production, and, in severe cases, death.

Heat stress has become a growing threat to farmers, already managing challenges including fluctuating markets and unpredictable weather patterns. Without the right protection, farmers can face mounting losses, jeopardizing both their livelihood and the sustainability of their farms.

A Smarter Solution to Rising Climate Risks

That is where we come in. We have developed a parametric insurance product that directly responds to temperature and humidity levels, creating a fast and transparent solution.

Using the Temperature Humidity Index (THI) to trigger automatic payouts, we ensure that farmers are compensated when their operations face the greatest risks, without delays or uncertainties. This data-driven approach helps mitigate financial strain while providing peace of mind.

Through a strategic partnership with AIR Parametric, a leader in weather-based solutions, this product is built on cutting-edge technology and real-world expertise. It is backed by A-rated, non-admitted capacity, ensuring that dairy producers can rely on it when they need it most.

By combining technology and data with specialist underwriting expertise, we can deliver something unique to the market. Eric Conklin, CEO of Rokstone Agriculture, said, “We have been active in the parametric space for several years, and it is a pleasure to work with another like-minded MGA for the benefit of the industry as a whole.”

The June Deadline

To maximize the benefits of this coverage, we urge brokers to engage with their clients before the June deadline. By securing this insurance early, dairy farmers can protect themselves from the financial fallout of extreme heat, ensuring their operations stay strong.

Do not wait until the heat sets in; get your clients covered today. Contact our team to learn more.