The Colombian government has contracted five parametric agricultural insurance policies to provide smallholder farmers with coverage against drought and excess rainfall, utilising a solution developed by the Insurance Development Forum (IDF), UNDP, and Germany’s BMZ via the InsuResilience Solutions Fund (ISF).
According to the announcement, the parametric policies developed under the Tripartite Agreement, a public-private partnership, will directly cover 14,402 smallholder farmers, benefitting up to 41,600 people across their households in five departments: Sucre, Córdoba, Cundinamarca, Meta and Chocó.
The policies will also provide up to US$20.14 million in coverage against drought and excess rainfall.
The parametric policies come into effect as Colombia prepares for intensifying effects of El Niño during the second half of 2026.
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