IDF unveils climate risk insurance for Uzbekistan farmers

By Rebecca Delaney

April 4 - (The Insurer) - Swiss Re and Europa Re have launched agricultural insurance products for smallholder farmers in Uzbekistan, in partnership with the U.N. Development Programme and the InsurResilience Solutions Fund through the Tripartite Agreement.

Swiss Re and Europa Re participated in the launch in their role as members of the Insurance Development Forum.

The new insurance products span five regions: Tashkent, Samarkand, Ferghana, Andijan and Namangan.

The first products will protect cherry, grape and apricot crops against frost, with the second phase also covering pomegranate, apple and walnut crops.

Uzbekistan's ministry of agriculture has subsidised 50% of the premium cost to make the coverages more broadly available to farmers.

Agriculture accounts for 24.3% of Uzbekistan's national GDP, and employs around 26% of the labour force. Around 65% of agricultural production is generated by smallholder farmers (also referred to as deqhan farmers), who occupy 13% of the country's cultivated land.

The climate risk crop insurance policies are sold by Uzagrosugurta and Semurg.

The first phase of establishing the agricultural insurance scheme included training and capacity building for local insurers, loss adjusters and government stakeholders, with the aim that more local insurers will distribute tailored agri-insurance in future.

UNDP is also helping the Uzbekistan government to draft key legislation, develop a disaster risk finance strategy, and incorporate insurance and risk financing in its national climate and development plans.

"The launch of this pilot agricultural insurance scheme is a significant milestone in advancing climate resilience for smallholder farmers in Uzbekistan," said Ekhosuehi Iyahen, secretary general of the IDF.

"It demonstrates the power of collaboration between the private, public and development sectors to deliver innovative risk finance solutions that protect livelihoods and build greater resilience for vulnerable nations."