A major milestone has been reached with the launch of agricultural insurance in Uzbekistan, targeting smallholder horticulture farmers who face growing climate risks. This initiative is part of the Tripartite Agreement Programme and involves a strong global-local collaboration. Key partners include UNDP, Swiss Re, Europa Re, and the Ministry of Agriculture, with support from Germany’s BMZ through the InsuResilience Solutions Fund (ISF). To make insurance accessible, the government is subsidizing 50% of the premiums.
Agriculture plays a central role in Uzbekistan’s economy. It contributes 24.3% to the GDP and employs over 26% of the workforce. In 2024, the country exported 1 million metric tons of fruit, largely produced by dehqan farmers. These smallholders supply 65% of agricultural output while working only 13% of arable land. The new insurance products will initially protect cherry, grape, and apricot crops against frost in five regions: Tashkent, Samarkand, Ferghana, Andijan, and Namangan. This scheme aims to boost farm resilience and ensure income stability for climate-affected growers.
This project represents a robust public-private partnership in agriculture. It combines public policy support with private sector expertise to close long-standing protection gaps for small farmers. The insurance will initially cover frost-related losses, with future expansions including pomegranate, walnut, and apple crops.
Historically, agricultural insurance in Uzbekistan faced issues with scale and adoption. Smallholder farmers often found it unaffordable or unavailable. This program changes that narrative. Local insurers Uzagrosugurta and Semurg now play a pivotal role in delivering these products, backed by technical input from Swiss Re and Europa Re.
Beyond offering protection, the program includes capacity-building components. Training for insurers, loss adjusters, and policymakers will build a foundation for sustainable growth. In parallel, UNDP is supporting the government in developing a national disaster risk finance strategy, ensuring that climate resilience planning extends beyond insurance alone. Notably, countries like India and the Philippines have shown how similar models can scale successfully, reinforcing the importance of this approach.
For climate-linked insurance to thrive, strong institutions are essential. On April 3, 2025, the program was formally launched before stakeholders including government agencies, insurer sales teams, and farmer organizations. The event marked the beginning of an intensive rollout campaign.
Participants like the Association of Professional Insurance Market Participants and the Hydrometeorological Service Centre are actively involved. In addition, Swiss Re and Europa Re have trained local insurers, helping them better assess risks and respond efficiently.
On the regulatory front, Uzbekistan’s National Agency for Prospective Projects (NAPP) is collaborating with the International Association of Insurance Supervisors (IAIS). A future IAIS membership would increase transparency, build investor confidence, and improve market oversight. These developments signal the government’s commitment to evolving the insurance sector from a service provider into a national risk management instrument. It’s not only about selling policies—it’s about building long-term confidence in the country’s insurance ecosystem.
The future of smallholder farming in Uzbekistan depends on practical, climate-smart solutions. According to Ilkhom Juraev, Head of Financing and Subsidising at the Ministry of Agriculture, farmers need protection from the financial shocks of unpredictable weather. This insurance project delivers just that.
Through collaborative efforts, farmers will gain faster access to compensation, reducing recovery time and protecting food security. Esther Baur Reinecke of Swiss Re emphasized the role of public-private cooperation in making this a reality. UNDP’s Anas Fayyad Qarman also highlighted the broader goal of strengthening the national insurance system.
Dr. Annette Detken from ISF stressed the significance of supporting climate risk insurance for dehqan farmers, who are the backbone of rural economies. This project empowers them to keep growing despite growing risks. With room to scale, Uzbekistan’s model could serve as a blueprint for Central Asia and other emerging markets. Its combination of local ownership, international backing, and strong policy alignment creates a sustainable platform for resilience.
Source:
