FANCAMPO Mexico Uses Remote Sensing For Crop Insurance

Overview: About FANCAMPO

FANCAMPO (Fondo de Aseguramiento Nacional Agropecuario y Rural) is an insurance entity in Mexico dedicated to providing comprehensive risk coverage to the agricultural sector. It plays a crucial role in supporting farmers by offering a range of insurance programs designed to safeguard against various risks such as weather-related events, pests, and diseases. The mission of the fund is to protect the heritage of agricultural producers in Mexico and to secure the operational continuity of their production units by meeting risk management needs.

FANCAMPO is a key player in the Mexican agricultural insurance market, striving to consolidate the local agricultural sector with the capacity, resources, and culture needed to manage the risks affecting national rural activity. To turn this strategic vision into reality, the company works in collaboration with EOS Data Analytics, integrating satellite data in their daily operations.

Challenges: Lack Of Data, Need For Streamlining Processes

FANCAMPO commenced its agricultural insurance operations in 2021, starting with the Spring-Summer cycle by implementing a parametric scheme for corn cultivation in the state of Jalisco. However, they were unable to operate during the Autumn-Winter cycle due to the absence of a satellite service provider.

Overall, the business goal of FANCAMPO in this case, could be described as the need to obtain a reliable source of information for evaluating agricultural properties and processing insurance claims.

In the short term, they needed to perform continuous monitoring of the fields subject to insurance, maintaining records that could be accessed and analyzed as needed. Meanwhile, their long-term goals include the development of customized solutions for tailor-made projects.

Solutions: Comprehensive Claims Assessment, Continuous Fields Monitoring

In 2022, FANCAMPO reached out to EOS Data Analytics to implement EOSDA Crop Monitoring as their primary source of remote sensing analytics. Initially focusing on monitoring NDVI (Normalized Difference Vegetation Index), the company’s agronomists gradually expanded their scope of analytics by employing numerous tools available on the platform.

In the event of an accident that negatively impacts crop health and potential yields of insured fields, FANCAMPO’s agronomists examine satellite images of the impacted property. Additionally, a technician is dispatched to physically inspect the property. To enhance the assessment’s accuracy, the results from both the monitoring and field visits are put together and examined in synergy to formulate a decision on the claim.

The most frequently used features of the EOSDA Crop Monitoring by FANCAMPO are Season Analytics, Field Leaderboard, and Scout Tasks.

EOSDA Crop Monitoring has helped us to effectively and continuously oversee crops. We can accurately estimate the precise time when crops are exposed to either insured or non-insured risks.

Felipe Solares Flores

Agricultural Engineer at FANCAMPO

For instance, in the event of drought-related incidents, satellite imagery can pinpoint the exact timeframe when crops begin to show signs of stress or damage.

Having access to this information enables FANCAMPO to promptly assist insured clients. Moreover, if a producer expresses a need, they supply satellite imagery of the insured properties as evidence of risks or their absence.

Results: Precise Risk Management, Scaling Opportunities

Overall, EOSDA Crop Monitoring has helped FANCAMPO to provide the highest level of precision in their service and to improve the processing time of claims, thereby contributing to the trust and satisfaction of fund members.

It’s necessary to highlight that EOSDA Crop Monitoring has allowed us to evaluate the value of insured entities and the validity of insurance claims with a high degree of precision and data reliability. Additionally, we spend 30-35% less time identifying accident areas, which helps us to understand when the accident occurred.

Felipe Solares Flores

Agricultural Engineer at FANCAMPO

In 2023, FANCAMPO has set an ambitious goal to insure over 50,000 hectares of cotton, barley, corn, wheat, and sugarcane crops across 10 Mexican states. This is part of their commitment, in collaboration with EOSDA, to deliver top-notch service to their partners and their insured crops.

Looking ahead, the fund plans to co-develop products with EOSDA that will enable state-level monitoring of large surface areas through automated alert systems. This will ensure that the platform’s data is accessible to producers, insured entities, state representatives, and FANCAMPO simultaneously, thereby eliminating any potential information bias among the parties.