The Weather Index Insurance, also called Parametric Insurance, protects
farmers and agribusiness producers from harsh weather and has no relation to productivity per se.

The contract sets parameters such as temperature or rain precipitation rates,
and indemnization occurs when recorded levels fall outside the range pre-
established by the policy, regardless of productivity impact or actual losses.

This is achievable through both public data bases indexes and private weather stations data, as long as they are available to be verified by all parts involved.

The main benefit of this modality is its simplicity, reducing operational costs as
well as claim-analysis time.

SUSEP Circular Nº 621/2021 – Art. 5: The insurance proposal and contract conditions shall inform, in accordance with the remaining requirements included in current regulation, the following:

I – the acceptance of the insurance proposal is subject to risk analysis;
II – product registration is automatic, and does not indicate approval nor recommendation from Susep; and
III – the policyholder may verify the status of both the insurance broker’s registration and the insurer’s registration at the website www.susep.gov.br.

§ 2: The information in the item II above shall be inserted, necessarily, in each and every marketing and advertising material used.