“Uzagrosugurta” JSC cooperates with international organizations in the implementation of the horticulture and vegetable growing insurance program
Farms in Uzbekistan and in particular dehqan farmers, remain vulnerable and are severely affected by climate change. To protect these smaller farmers from climate-related hazards, the InsuResilience Solutions Fund (ISF) is co-funding the development and implementation of a multi-peril indemnity insurance product for horticulture and vegetables in Uzbekistan.
The insurance solution is being developed by members of the Insurance Development Forum (IDF), working closely with local insurers, UNDP Country Office in Uzbekistan and the government of Uzbekistan.
In particular, in order to protect gardeners from risks and natural disasters related to climate change, the world's leading reinsurance companies Europa Re and Swiss Re, which are two members of the Insurance Development Forum (IDF), as well as “Uzagrosugurta” JSC, one of two local insurance companies, are working on the development of an agricultural insurance product for Uzbek farms.
The Ministry of Economy and Finance the Ministry of Agriculture will closely collaborate in the project, and it will be supported by the UNDP country office in Uzbekistan.
The ISF co-funds the project implementation and thereby helps to accelerate growth and enable the potential extension throughout the country. The Ministry of Agriculture has a keen interest in introducing a more effective and inclusive scheme that grants all farmers in the horticulture and vegetable sector access to insurance and, thus, increase their resilience to climate change. This marks a public-private partnership project under the Global Tripartite Agreement between the German government, IDF and UNDP to support risk-management solutions for climate-vulnerable countries.
During the initial year of the project, the team will conduct a pilot of the insurance products in Fergana, Namangan and Andijan regions. In the following year, the project plans to expand the coverage by including additional types of fruits and/or vegetables.
An indemnity-based solution will compensate based on the real crop loss, evaluated by loss adjusters that will be trained during the project. This approach facilitates direct interaction with farmers, fostering the development of local insurance markets and knowledge transfer regarding risks and crops.