
Ecuador Launches Climate Insurance to Protect Small Farmers
Ecuador has introduced its first parametric insurance program to protect smallholder maize and rice farmers from climate-related risks such as floods, storms, and El Niño-driven weather events. The initiative, led by Guy Carpenter Mexico, AXA Climate, Blue Marble Microinsurance, and Campo Seguro, in partnership with the InsuResilience Solutions Fund (ISF), aims to provide affordable coverage to farmers who previously lacked access to traditional indemnity-based insurance.
Agriculture is crucial to Ecuador’s economy, supporting 17.9% of its workforce and supplying nearly 60% of essential food. However, extreme weather events threaten rural livelihoods, making risk management critical. Unlike conventional insurance, the new parametric model will offer faster payouts based on predefined we...