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, marking 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).
Launched in 2023 and led locally by Ecuador’s Ministry of Agriculture, Livestock and Fisheries (MAGP), the project has focused on developing parametric insurance solutions that trigger automatic payouts when rainfall exceeds predefined thresholds or when drought conditions persist beyond set limits.
The two new products, covering extreme rainfall and drought risk, were developed by IDF member organisations including AXA Climate, Guy Carpenter México Intermediario de Reaseguro S.A de C.V, and Blue Marble, in collaboration with MAGP, with local insurer Hispana de Seguros acting as the policy implementer on the ground.
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