Agricultural Financial Services

Top Solutions

Agrograph

Agrograph: Bringing Satellite Precision to Crop Insurance

Taralinda Willis, CEO

In agricultural insurance, risk has traditionally been assessed using broad averages. Agrograph , led by CEO Taralinda Willis, is changing that by bringing field-level intelligence to insurers.

By harnessing satellite imagery and artificial intelligence, the company delivers detailed insights about individual crop fields across different geographies. This approach allows clients to move beyond county-level averages, enabling them to understand the nuanced conditions of each plot of land.

Willis explains, “Instead of working with county-level yield averages, Agrograph looks at individual fields to extract metrics that are relevant to the insurance space.” This precision helps insurers verify claims faster, set more accurate premiums, and design innovative insurance products that were once difficult to offer.

A Faster, Smarter Solution

Agrograph specializes in parametric, or index-based, insurance. Unlike traditional coverage that requires post-loss assessments, parametric insurance pays out automatically when predefined conditions, such as drought or flooding thresholds, are met.

This reduces administrative delays and simplifies the process for both farmers and insurers. Agrograph’s data provides the backbone for these offerings, making parametric insurance more accessible and reliable.

Clients approaching Agrograph typically seek to launch new parametric products but lack the detailed data needed to support them.

The company partners with insurers to fill that gap, delivering actionable analytics while leaving underwriting and claims management to its partners. This collaborative model ensures that insurers can offer products quickly and confidently, while farmers benefit from a streamlined claims process.

Granularity and Timeliness: The Core Advantages

Two features set Agrograph apart. The first is granularity. The company evaluates nearly thirty-five variables for each field, including crop type, planting and harvesting dates, soil management practices, and risk of severe weather events. Insurers can use these insights to reduce basis risk, which is the difference between what the index covers compared to what the policyholder actually lost, and tailor premiums for individual fields based on weather risk.

The second advantage is timeliness. Agrograph monitors the landscape almost daily through satellites and weather information. Any event that threatens crop yield triggers a signal, allowing insurers to respond promptly. Willis notes, “We monitor the landscape with the help of satellites almost every day, so if there is a weather event that pushes a farmer below that threshold, we know the impact on the yield in each individual field due to that peril which leads to faster and more effective settlements.” This combination of precision and speed is helping insurers assess and manage crop risk more effectively.

Driving Innovation Through Data

Agrograph’s data is not only precise but also validated through rigorous academic research. The company was founded by Dr. Mutlu Ozdogan, a professor at the University of Wisconsin – Madison with decades of experience in remote sensing and agriculture. Ongoing innovation and investment in AI ensures that the models are robust, replicable, and reliable across various geographies and crop types.

This research-backed foundation allows Agrograph to apply its solutions internationally, providing consistent quality whether crops are in the United States, Latin America, or other emerging agricultural markets.

One example of Agrograph’s impact comes from a major insurance company evaluating multiple data providers for a parametric insurance initiative. Agrograph’s data consistently outperformed competitors and became central to the insurer’s ongoing product development. This case highlights the value of detailed, validated data in shaping parametric insurance products and demonstrates how actionable insights can lead to better outcomes for both insurers and farmers.

State of Industry

Unlocking Risk Management: The Role of Insurance Data in Agriculture

Agricultural business takes place in an environment characterized by variations in weather, market dynamics, costs of production, and evolving farming practices. To the insurers, such knowledge is only possible through the availability of information that can interpret the complexities of agricultural environments into risk parameters. Agricultural insurance data providers play a central role in providing the insurers with the needed information by gathering, processing, validating, and analyzing information related to crop, livestock, land, weather, and farming activities.

In light of the data-driven nature of agricultural business, having structured and up-to-date information will be critical in the development of insurance products that are aligned with practical realities and decision-making.

Improving Underwriting through Reliable Agricultural Data

The underwriting of agricultural insurance entails a thorough knowledge of the exposure from various geographical areas, crops, seasons of growth, and agricultural practices. The role of agricultural insurance data vendors includes assisting insurance companies in accessing databases, which may offer valuable insights on historical yields, climate conditions, type of soil, acreage, production trends, and many other factors that may influence losses. If such databases are regularly organized and updated, then insurance companies will be able to assess risks and develop proper underwriting strategies for various agricultural sectors.

The significance of data quality arises from the fact that the risks within agriculture can be very varied among neighboring regions as well as during various seasons. There could be a problem with generalizing on a large regional basis, since this might fail to capture the risks facing a particular crop or area in agriculture. Data providers play an important role in this case, since they bring together data from various sources.

Enhanced data can also make product development more effective. Insurance firms can analyze trends from the past and current agricultural conditions in order to find out where coverage that is suitable for certain crops, areas, or agricultural methods is required. With such information, companies will be able to reconcile their clients' needs with prudent underwriting practices.

Enhancing Claims Management with Better Data

The data from the agriculture insurance can be beneficial for claims management, too. The reason is that when the claim is filed, the insurer requires reliable data to be able to ascertain whether the claim corresponds with the provisions of the insurance policy and the expected results in the agriculture sphere. Various historical, satellite, yield, field-related and other kinds of data may be of use for this purpose.

"Data integration that is well governed will help prevent duplication and increase efficiencies in the processes."

Availability of appropriate information will be useful in cutting down manual search of data and assist in working of claim processing teams effectively. Rather than solely depending on scattered data, adjusters and analysts will have access to structured databases in order to match the stated conditions with pre-set standards. It will be helpful in providing a basis of communication with the policyholders.

There is evidence that supports claims analytics beyond single incidents. Through analyzing claims data in various regions, for various crops, and at different times of the year, insurance providers can look into common patterns and determine if any exposures need to be re-underwritten or re-designed in terms of products. This becomes an ongoing process where experience with claims becomes part of future risk analysis.

Supporting Strategic Decisions with Advanced Analytics

The usefulness of insurance data in agriculture is not limited to underwriting and claims processing. Insurance companies can analyze the information in order to control their portfolio concentration, geographical exposure, profitability, and capacity. In case of using the data in a standard format that is easily analyzable, the management is able to base its decisions on the information rather than on some individual facts.

Analytics can also assist the insurance industry in analyzing emerging trends. Climate change, variations in farming techniques, use of irrigation, type of crops planted, and advances in technology can all impact agriculture-related risk. Through the availability of good data, insurers can be able to monitor these trends and incorporate their impact in pricing, underwriting, and investment decisions. The purpose is not just data collection but the use of data to derive business intelligence.

Integration is also an issue to consider. In the area of agricultural insurance data, there is more demand for data that can integrate with underwriting systems, claim processing systems, geographical information systems, and analytics platforms. Data integration that is well governed will help prevent duplication and increase efficiencies in the processes. Good governance is also crucial, as insurers must be able to trust the accuracy of the data.

Data suppliers that provide agricultural insurance data will still be useful partners as insurers search for better analysis skills. The integration of various databases, better data validation, geography, and advanced analytics might help insurers build strategies along the whole agricultural value chain. By making agricultural data actionable and by helping insurers work in a consistent way and make better decisions, data suppliers allow them to react more quickly to changing market conditions. Ultimately, their contribution will be a more disciplined approach to agricultural insurance, where useful data becomes the basis for portfolio management and business strategy.

Leadership Perspective

Pronaca

Driving Financial Excellence in Agribusiness Growth

Maximiliano Proano, Senior Director of Finance

Maximiliano Proano is the Corporate Controller at Pronaca, bringing close to two decades of experience in corporate finance, treasury, and strategic financial management. With a background in Economics and Finance, he specializes in capital markets, risk management, and financial planning, driving sustainable growth and financial excellence in the agribusiness sector.

In an exclusive interview with Agri Business Review, Proaño shared his views on financial investments and the risks associated with the agriculture sector.

1. Could you please provide a brief overview of your professional background, and your current role and responsibilities at Pronaca?

I have a background in Economics and Finance and began my career as a bank trader. I later transitioned to a corporate role as a Treasury Manager. I have been with PRONACA in Ecuador for nearly 17 years, starting as a Treasury Manager and evolving to Corporate Treasurer. Over the years, I have taken on additional responsibilities, including taxes, working capital management, and commodity risk management. Currently, I oversee all financial operations, planning and budgeting, treasury and taxes, strategic finance, accounting, and internal control.

2. Companies that establish a strong presence in local capital markets often gain a competitive edge in securing funding. What key financial strategies can organizations adopt to strengthen their position in capital markets and optimize financing costs?

• Securing funding involves a broader strategy aimed at diversifying sources of funding, including entering local capital markets. Success in local capital markets requires maintaining a solid financial position, avoiding excessive financial leverage, and ensuring a steady cash flow.

• After establishing a strong presence in local capital markets, focus on identifying key recurrent buyers and understanding their reasons for purchasing your issuance. Continuously analyze market trends related to rates and ensure your rate strategy aligns with your risk profile. Consistency in your strategy, even during market turmoil, will build market trust.

3. Interest rate arbitrage can be a valuable tool for taking advantage of market inefficiencies. How can finance professionals identify and execute such opportunities while managing associated risks?

A diversified funding strategy positions you well to identify arbitrage opportunities. Being well-versed in financial markets and having a robust risk management structure is crucial for managing associated risks.

4. Mergers and acquisitions are often seen as growth accelerators, but they come with inherent financial risks. What due diligence practices do you recommend for assessing the financial viability of M&A opportunities, and how can companies ensure seamless post-merger integration?

An essential aspect of due diligence is involving your entire finance team in evaluating the target's financial processes. This significantly reduces the likelihood of post-deal surprises.

5. Building a high-performance finance team requires strong leadership and a clear vision. What leadership strategies do you consider most effective for developing finance teams that can navigate challenges and drive business success?

The main recommendations are:

Identify the technical and managerial capabilities of each team member to ensure successful specialization. Align responsibilities with individual motivations. Create common working spaces where team members can learn from each other and understand how their work fits into the company's overall strategy. These spaces also foster a sense of ownership among team members.

6. What key strategies would you suggest to young professionals, navigating the complexities associated with agribusiness for better business growth and success?

Agribusiness is a fascinating field that combines livestock, manufacturing, and financial management. Young professionals should learn the business from the ground up, starting with operations such as growing chickens, cows, or pigs. Understanding conversion rates and cost structures is critical for analyzing competitiveness and business profitability.