Peru

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Sustainable insurance solutions for agricultural and climate risk requires a joint effort of both the public and the private sector: the partners need to cooperate and commit to facilitating a market development process. Private insurance companies design appropriate insurance products, establish administrative processes and carry the risk. They invest financial and human resources and commit themselves to the agricultural and climate risk insurance markets. Government support that goes beyond creating an enabling regulatory environment can be critical to the sustainability of such systems...
The Peruvian agricultural sector, which is fundamentally important to the national economy, is particularly affected by natural hazards caused by climate change. Insurance as a possible risk management strategy has received only little attention so far (both by clients and by the industry) due to the following reasons. Limited experience with financial products including insurance. Overall lack of understanding of and interest in (climate) insurance among most stakeholders. Widespread lack of trust in insurance companies amongst the population. Lack of investigation and research with respect...
The core objective is to provide the target group with the opportunity to obtain insurance by means of an innovative insurance scheme for extreme weather events.
The overall aim of the project is to strengthen resilience against disruptive weather phenomena and climate change at the national, regional and local level in three partner countries: Tanzania, Peru, India.
Peru has a risk transfer system for the agricultural sector financed by the state and the private sector, including insurances against climate risks.