Agriculture 4.0: Zurich and xFarm collaborate to innovate insurance policies and make farming smarter and more sustainable
Milan, Sept. 6, 2022 – Zurich Italy and xFarm Technologies launched an important project today to make policies for the agricultural industry more innovative and help create a more sustainable future. Having always been attentive to the needs of farms, particularly organic farms, Zurich has now joined forces with xFarm Technologies, the tech company that supports and simplifies the work of 110,000 farms spread over 1.5 million hectares in more than 100 countries around the world through its digital platform.
In a world increasingly in need of Agriculture 4.0 to cut CO2 emissions and make farming more efficient and productive, bringing smart farming and the insurance industry together is a pioneering move. The project launched by Zurich and xFarm Technologies – which for now focuses on the Italian market, where Zurich has been operating since 1902 – is among the first of its kind in Europe, and has great economic, technological, and sustainability potential.
Through its ongoing dialogue with farmers and consortia, Zurich has designed tailored solutions to protect companies in the sector, which is characterized by specific risks related to farming and, particularly, to organic farming.
From today, Zurich’s insurance dedicated to the agricultural industry, “Zurich Azienda Agricola,” becomes more innovative thanks to the digital platform developed by xFarm Technologies, aiming to drive the digital transformation of the entire supply chain.
The official presentation of the project will take place at SANA, the International Exhibition of Organic and Natural Products in Bologna (September 8-11). In the first phase of the project, farms insured with Zurich will automatically enjoy the activation of the “sustainability module” of the xFarm app, which will make the management of the farm itself smarter and more efficient; farmers will save time and money, and have a new digital tool to use.
During the second phase of the project, the data collected by the app will make it possible to tailor each policy to the actual needs of farms. Due to climate change, farmers face major challenges, such as severe drought and extreme weather events, which makes it crucial to provide them with the best advice and the right tools.
Furthermore, thanks to the data that the xFarm app will collect 24 hours a day (e.g. from IoT devices, images from satellites, etc.), when a severe weather event occurs, such as a hailstorm, tornado, or dry spell, Zurich will be able to assess the damage in real-time and objectively, and will be able to automatically provide payment without the need to ask for extensive and detailed documentation from farmers.
The project launched by Zurich and xFarm Technologies thus aims at the future of so-called parametric insurance, which allows the policy to be customized – based on parameters such as the area where a farm is located, or the type of crops it grows -and makes claims assessment and payment more secure and accuratebased on certain parameters.
“Zurich is a global leader in the insurance industry, and for many farmers, it is an important partner when it comes to protecting their farm. At xFarm Technologies we are proud to work with Zurich to offer Italian farms a service that combines Agriculture 4.0 and insurance,” said xFarm Technologies CEO Matteo Vanotti.
Elena Rasa, Chief Underwriting Officer Zurich Italy, stated: “with over 2 million hectares and a significant growth (+233%) in the national organic market recorded between 2008 and today, Italy is a leader in the organic sector. As an insurance company, we want to protect this achievement and support organic farming companies, which have been particularly affected by extreme weather events this year. Working with xFarm Technologies allows us to offer farmers tools that are better suited to their needs and to protect them with more effectiveness and easiness.”
Confirming themselves as promoters of a vision based on full adherence to the highest ESG standards, Zurich and xFarm are promoting environmental sustainability and participating in SANA with a permanent stand made entirely of environment-friendly materials.