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IDF backs Colombia parametric insurance for 14,402 smallholder farmers
The programme is backed by five secured parametric policies and offers up to USD $20.14 million in cover for drought and excessive rainfall.
The Insurance Development Forum (IDF) announced the launch of a parametric agricultural insurance programme in Colombia aimed at helping smallholder farmers manage the financial impact of extreme weather. IDF said the Colombian Government secured five parametric insurance policies to cover 14,402 smallholder farmers across Sucre, Córdoba, Cundinamarca, Meta and Chocó.
IDF said the initiative is expected to benefit up to 41,600 people within participating farming households and provides up to USD $20.14 million in cover against drought and excessive rainfall. The launch comes as Colombia prepares for expected strengthening of El Niño conditions in the latter half of 2026, with the goal of improving financial resilience ahead of potential impacts on agricultural production.
The programme was developed by Colombia’s Ministry of Agriculture and Rural Development (MARD) and FINAGRO, in partnership with the governments of the five departments, and delivered through the Tripartite Agreement Programme involving IDF, the United Nations Development Programme (UNDP) and Germany’s Federal Ministry for Economic Cooperation and Development (BMZ). Funding for product development was provided jointly by a consortium and IDF’s InsuResilience Solutions Fund (ISF).
IDF said the product was jointly developed by the ministry and a consortium including Guy Carpenter, Swiss Re, AXA Climate, Munich Re, Raincoat, and La Previsora S.A. Compañía de Seguros. IDF quoted Sucre Governor Lucy Inés García Montes saying that preparing for El Niño means acting before disasters strike, by providing financial protection to help manage climate risks and protect livelihoods.