Introduction to the New Agricultural Insurance Scheme
In a collaborative effort, key members of the Insurance Development Forum (IDF), Europa RE, Swiss Re, and the United Nations Development Programme (UNDP) have embarked on a pioneering venture to introduce a novel agricultural insurance solution for smallholder horticulture farmers in Uzbekistan. This initiative is further supported by BMZ through the InsuResilience Solutions Fund (ISF), and it is part of the broader Tripartite Agreement Programme.
Coverage and Regional Application
This innovative insurance solution is designed to cover six major crops across five vital regions, with significant backing from Uzbekistan’s Government through its Ministry of Agriculture. To increase accessibility, the Ministry is offering a 50% subsidy on the premium costs, thereby making this protection more attainable for climate-vulnerable horticulture farmers.
In a public-private partnership involving the Ministry of Agriculture of Uzbekistan, UNDP, Swiss Re, Europa Re, alongside local insurers Uzagrosugurta and Semurg, the first phase of this initiative will provide insurance for cherry, grape, and apricot crops against frost in the regions of Tashkent, Samarkand, Ferghana, Andijan, and Namangan. The subsequent phase will expand to include pomegranate, apple, and walnut crops.
Implementation and Economic Impact
Uzagrosugurta and Semurg are actively marketing these policies, following extensive training and capacity building for local insurers, loss adjusters, and government stakeholders. The overarching aim is to enable more local insurers to offer tailored agri-insurance solutions in future phases.
In Uzbekistan, agriculture constitutes 24.3% of the national GDP and employs approximately 26% of the workforce. The sector has experienced a 5.1% increase in fruit production, with over 1 million metric tons of fruits exported in 2024. Notably, around 65% of the agricultural output originates from dehqan or smallholder farmers occupying just 13% of the cultivated land.
Project Launch and Future Prospects
Initiated in 2023, the ‘Agriculture Insurance Scheme for Horticulture Farmers in Uzbekistan’ project primarily aims to counteract the growing impacts of climate change and erratic weather patterns on farmers’ crop yields. Additionally, the Tripartite project supports the National Agency for Prospective Projects of Uzbekistan (NAPP) in engaging with the International Association of Insurance Supervisors (IAIS). A prospective IAIS membership would significantly advance Uzbekistan’s insurance market by enhancing transparency, competitiveness, and regulatory oversight.
On April 3, 2025, the newly developed agriculture insurance products were presented to local insurers’ sales forces, government agencies, and farmer organizations to kickstart the sales process.
Voices from the Field
Ilkhom Juraev, Head of Financing and Subsidising Department at the Ministry of Agriculture, noted the significant threats posed by agricultural risks to crop production, farmers’ welfare, and the national economy. He emphasized, “Given the high level of risks in agriculture, compounded by climate change, developing agro-insurance is crucial for risk management. It’s vital that farmers have the opportunity to insure their crops, and we invite insurance companies to collaborate in this area.”
Sobir Hasanov, Head of Agricultural Insurance Department at Uzagrosugurta, remarked, “Agroinsurance is crucial for Uzbekistan’s economic development and a key method for managing risks, including those related to climate. We urge Uzbek farmers to protect their harvest today.”
Anas Fayyad Qarman, UNDP Deputy Resident Representative in Uzbekistan, highlighted, “This project demonstrates how public-private partnerships can empower small farmers against climate risks. With UNDP’s assistance, new agricultural insurance products were developed as part of broader efforts to bolster Uzbekistan’s growing insurance sector. We are also aiding the government in drafting key legislation, formulating a disaster risk finance strategy, and integrating insurance and risk financing into national climate and development agendas.”
Ekhosuehi Iyahen, Secretary General of the Insurance Development Forum, stated, “The launch of this pilot agricultural insurance scheme is a pivotal step in enhancing climate resilience for smallholder farmers in Uzbekistan. It showcases the potential of collaboration among private, public, and development sectors to create innovative risk finance solutions that safeguard livelihoods and build resilience in vulnerable communities. Our gratitude goes to Europa Re and Swiss Re for their technical expertise and commitment to working with local insurers, UNDP, and Uzbekistan’s Government to develop tailored insurance products that will assist thousands of farmers in mitigating climate-related risks.”
Dr. Annette Detken, Head of InsuResilience Solutions Fund, concluded, “This initiative is a significant milestone in strengthening the climate resilience of Uzbekistan’s dehqan farmers. By leveraging public-private cooperation, we are not only broadening access to insurance but also ensuring that smallholder farmers, who are the backbone of Uzbekistan’s economy, have the financial protection needed to withstand climate shocks. The ISF proudly supports this effort, aligning with our mission to enable sustainable climate risk financing solutions for vulnerable communities. We anticipate these insurance products will scale and provide tangible benefits to farmers across the country.”
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