Digit Insurance disburses moisture index-based parametric insurance to Rajasthan farmers
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Farmers engaged in harvesting and sorting of onions in a farm at Bub Ka Hera Village in Alwar District of Rajasthan
| Photo Credit: SHIV KUMAR PUSHPAKAR
Go Digit General Insurance Ltd (Digit Insurance) has disbursed a moisture index-based parametric insurance claim to farmers in Rajasthan’s Tonk district after excess moisture breached predetermined thresholds.
The company stated that farmers across 30 villages in Tonk received payouts as the Water Balance Index (WBI) exceeded defined limits for soil moisture. Excessive soil moisture increases waterlogging risks, which can cause crop rot and reduce rabi season yields. Nearly 500 farming households benefited from this initiative, receiving financial support to mitigate climate-related disruptions, according to the company.
Digit Insurance collaborated with Howden Insurance India to implement this WBI-based parametric solution, covering over 6,000 farmers across Rajasthan (Tonk) and Uttar Pradesh (Varanasi, Gorakhpur and Jaunpur). The program protects approximately 2,200 acres against excess moisture and drought risks.
‘Tools of Confidence’
Adarsh Agarwal, Appointed Actuary at Digit Insurance, emphasized the company’s commitment to data-driven solutions: “Our focus is on designing insurance products that directly address real-world customer risks. Parametric insurance offers a unique way to protect vulnerable groups from climate threats. This WBI-based tool delivers rapid financial assistance when farmers need it most, establishing higher protection standards through scientific innovation.”
Mohammad Faizan Huq, Head of Climate Risk and Agriculture at Howden India, highlighted the program’s significance: “As weather volatility intensifies, India’s farmers need transparent, fast-acting solutions. Parametric insurance—though still emerging in India—holds transformative potential. Partnerships with insurers like Digit help expand these solutions to strengthen community resilience.”
WBI-Driven Moisture Parametric Insurance
The WBI—developed by climate risk specialists Global Parametrics—quantifies excess moisture or drought by comparing rainfall with potential evapotranspiration levels. It utilizes ERA5-Land climate data from the European Centre for Medium-Range Weather Forecasts (ECMWF).
The index specifically measures soil-moisture stress affecting smallholder farmers. Since payouts triggered by objective climate data ensure transparency, the parametric system issues compensation ranging from 10% to 100% of coverage limits based on severity when predefined thresholds are breached.
Published on January 29, 2026
