Integrated financial management of climate risks in the agricultural sector in Peru

The project advised the Peruvian Ministry of Agriculture (MINAGRI) on establishing a risk-transfer system with the backing of both the state and the private sector. The system improved food security, enhanced economic stability in rural areas and helped the agricultural sector to better cope with climate change. The private and public financial services offered through the system enabled agricultural producers to reduce their vulnerability to weather extremes - which were exacerbated by climate change - and to limit their exposure to the associated risks. The project was supporting the development of an information system and strengthening the expertise required for the management and government supervision of risk transfer systems in Peru.

Project data

Countries: Peru
IKI funding: 4,975,635.95 €
Duration: 01/2014 till 02/2019
Status: completed
Implementing organisation: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Political Partner: Ministry of Foreign Relations - Peru
Implementing Partner: Ministry of Agricultural Development and Irrigation, MIDAGRI - Peru

Ministry of Agriculture and Irrigation (MINAGRI) - Peru*

Münchener Rückversicherungs-Gesellschaft (Munich Re) - Germany

Superintendency of Banking and Insurance - Peru
Online: https://www.apeseg.org.pe/investigacion-y-desarrollo/#toggle-id-1-closed

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State of implementation/results

Project completed.
The project significantly contributed to the development of a risk transfer system with agri-insurances for smallholder farmers in Peru.
Between 2014-2018, the insured area increased by 92%, which is about 1/3 of the total area.
290,000 smallholder farmers in eight regions are now financially secured against crop losses.
The increase is due to improved single market insurance conditions, premium rates and covereage triggers.
A law on agricultural insurances and its own guideline on "Agricultural Finance and Agricultural Insurance" were established.
In 2017, the Ministry of Agriculture (Ministerio de Agricultura y Riego, MINAGRI) also founded the Department of Financing and Agricultural Insurance (Dirección de Financiamiento y de Seguro Agrario, DIFESA). DIFESA ensures the leadership and commitment of the Ministry in the promotion and management of agricultural insurances. The Ministry of Agriculture, insurance companies and the Banking and Insurance Supervisor established a stable public-private partnership, as part of which a bimonthly public-private dialogue forum was set up.
Important actors in the project were sensitized and trained in the development of agricultural insurances.
To improve the still poor information available at the beginning of the project, a method for the identification and zoning of agricultural land (Mapeo de Areas Agricolas, MAA) was tested in three regions.

Latest Update:
12/2025