UNDP pilots jaguar protection insurance in Argentina

By Rebecca Delaney

May 28 - (The Insurer) - The UN Development Programme has partnered with Latin American insurer Río Uruguay Seguros to develop a "world first" insurance product to protect both endangered jaguar populations and local communities and livestock in the Argentine province of Misiones.

The initiative offers dual coverage by compensating local livestock owners for losses while also safeguarding the critically endangered Yaguareté species of jaguar and up to $4 trillion in ecosystem management that it provides across Latin America.

The UN's Insurance and Risk Finance Facility explained that habitat loss has forced jaguars into closer proximity to local communities. With livestock and pets becoming prey, the risk of retaliatory killing by livestock owners is significantly increased.

In Argentina, where the Yaguareté species is classified as critically endangered, the economic value of a single jaguar is approximately $1.8 million.

The Insurance and Risk Finance Facility said the solution, which was funded by the German Ministry of Economic Cooperation and Development, has the potential to unlock a "new frontier" in biodiversity finance and preserve ecosystem services across the region.

An official pilot of the insurance product has been launched in the municipality of Comandante Andresito, which has the highest incidence of jaguars preying on livestock across the Misiones province.

The insurance policy was purchased from Río Uruguay Seguros by the provincial government and covers cattle, pigs, sheep, goats, poultry and pets.

It is being offered free of charge to residents, without any deductibles.

Claims will be verified by NGO Aves Argentinas, with park rangers from the Ministry of Ecology supporting the claims verification process.

Once an incident is confirmed, the affected livestock producer will receive quick financial compensation to a digital wallet or bank account. A support plan is also activated to help farmers improve livestock management and prevent future incidents.

Juan Carlos Godoy, CEO of Río Uruguay Seguros, said the insurance pilot is being monitored and evaluated to assess the potential for expansion of an open-source insurance product to other regions of Argentina, and across Latin America and the Caribbean.