Ecuador has contracted its first parametric agricultural insurance policies, benefitting up to 10,000 people in smallholder rice and maize farming households against extreme rainfall and drought-risk.
The placement of these policies in the Ecuadorian insurance market is a major milestone for the Tripartite Agreement Programme – a public-private partnership between the Insurance Development Forum (IDF), the United Nations Development Programme (UNDP), and the German Federal Ministry for Economic Cooperation and Development (BMZ) through the InsuResilience Solutions Fund (ISF) – to build developing countries’ resilience to climate risk.
Ecuador’s agricultural sector is highly exposed to climate shocks, with more frequent and severe floods, droughts and wildfires causing significant crop losses in recent years. These events disproportionately affect Ecuador’s smallholder farmers, who make up 75 percent of all farmers in the country and are critical to domestic food security.
Source - https://insurance-edge.net
