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Insurance verified Verified Outcome TRL 9

Parametric Crop Insurance for Supply Chain

domain Client: Cotton Gin / Textile Manufacturer handshake Provider: Arbol schedule Deploy: 2022-Present
90 Impact
Enterprise Ready
Evidence Score: 5/10
Strength: High

Executive Summary

ANALYST: COI RESEARCH

Use of parametric weather derivatives to protect a cotton processor from volume shortfalls caused by regional drought, ensuring fixed cost coverage.

rate_review Analyst Verdict

"Strategic supply chain hedge. This use case moves insurance up the value chain—protecting the processor (Cotton Gin), not just the farmer. It demonstrates how climate data can secure industrial P&L against upstream weather risks."

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Full Audit Report Available Includes Risk Register, Technical Specs & Compliance Data.

warning The Challenge

A cotton gin (processing facility) has high fixed operational costs. Its profitability depends on the volume of cotton it processes. If a regional drought causes local farmers to lose their crop, the gin has no cotton to process but still has to pay its staff and equipment leases. Traditional crop insurance covers the farmer, not the processor's volume risk.

psychology The Solution

Structured a parametric coverage based on regional rainfall data (using NOAA/satellite data). If cumulative rainfall in the sourcing region fell below a specific threshold during the growing season, the policy triggered a payout to the Cotton Gin. This payout replaced the lost revenue from the missing cotton volume, allowing the facility to remain solvent.

settings_suggest Technical & Deployment Specs

Integrations
Blockchain Oracle (Chainlink)
Deployment Model
Smart Contract / Policy
Data Classification
Weather Data
Estimated TCO / ROI
Premium
POC Summary ( to )

"N/A"

shield Risk Register & Mitigation

Risk Factor Severity Mitigation Strategy
Basis Risk Medium Grid-based weather data.
Data Oracle Low Chainlink decentralized oracle.

trending_up Impact Trajectory

Audited value realization curve

Payout covered fixed operating costs Verified Outcome
Primary KPIEliminated need for physical loss adjustment
Audit CycleImproved credit profile for the facility

policy Compliance & Gov

  • Standards: CFTC / Insurance
  • Maturity (TRL): 9
  • Evidence Score: 5/10
  • Data Class: Weather Data

folder_shared Verified Assets

description
Verified Case Study
PDF • Version 1
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Technical Audit
PDF • Audited
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The "Blind Verification" Protocol

How we verified these outcomes for Cotton Gin / Textile Manufacturer without exposing sensitive IP or identities.

Private
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1. Raw Evidence

Audit ID: #PRIV-583
Evidence: Direct SQL Logs
Public
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2. Verified Asset

Outcome: Verified
Ref ID: #COI-583

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