Thailand -Using Blockchain Insurance to Protect Farmers from Climate Shocks

Thai rice fields

News facts

Objective
Adaptation
Source organisation
Climate Technology Centre and Network
Sectors
Agriculture
Approach
Community based
Cross-sectoral enabler
Capacity building and training
Communication and awareness
Governance and planning
Innovation & RDD
 
 
Thai rural farmers

 

Climate variability in Thailand has led to increasingly frequent floods and droughts, resulting in significant crop losses for farmers. Despite this growing risk, fewer than 10% of Thai farmers are covered by crop insurance. High administrative costs, slow claim processing and limited trust in traditional insurance schemes have prevented wider uptake — leaving smallholder farmers exposed to climate shocks.

 

To address these challenges, Thailand’s Office of National Higher Education Science Research and Innovation Policy Council (NXPO) explored the potential of blockchain-based parametric insurance, a project supported by UN CTCN and the AFCIA I Programme. Unlike conventional insurance, parametric models trigger automatic payouts based on predefined climate indicators, such as rainfall thresholds, rather than damage assessments.
 
Through a detailed feasibility study, the project examined how blockchain technology and smart contracts could increase transparency, reduce administrative costs and significantly shorten payout times. Results showed that administrative costs could be reduced by up to 40%, with payouts delivered within 48 hours of a qualifying climate event.
 
Based on these findings, a pilot programme was designed targeting 5,000 farmers in flood- and drought-prone provinces. The initial focus is on rice and cassava production, with plans to expand to additional crops. By linking climate data directly to payouts, the model helps farmers recover faster and maintain income stability after extreme weather events.
 
“Blockchain offers transparency, speed and trust — essential ingredients for protecting farmers from climate risks.”
Dr. Surachai Sathitkunarat, President, NXPO

Impact in numbers:

  • 5,000 farmers targeted (50% women, 10% youth)
  • 3 million hectares covered
  • USD 77,000 in estimated seasonal revenue protected
Link to this project's Fact Sheet, with more details. 
 
To learn more about the AFCIA I Programme and it's impacts on the ground, click here. 
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