CPIC & MunichRe – Inner Mongolia Grasslands Index Insurance

Munich Re’s Greater China Agro team partnered with China Pacific Property Insurance to launch the first parametric insurance policy for carbon storage on grasslands in Inner Mongolia in early 2022. The product addresses risks facing the region’s 87 million hectares of natural grasslands, including but not limited to natural disasters, desertification and overgrazing — all of which threaten carbon absorption capacity. The insurance uses satellite remote sensing technology for continuous monitoring of grassland conditions and is triggered based on the net primary productivity (NPP) index, a key variable for determining carbon cycling in grassland ecosystems.