Implementation update: Landmark public-private insurance scheme for Smallholder Horticulture Farmers launched in Uzbekistan
The Insurance Development Forum (IDF) members Europa RE and Swiss Re, and the United Nations Development Programme (UNDP) with support from BMZ through the InsuResilience Solutions Fund (ISF), launched new agricultural insurance products which have been tailored for smallholder horticulture farmers in Uzbekistan in the context of the Tripartite Agreement Programme. The insurance covers six key crops across five regions, with the Government of Uzbekistan, through the Ministry of Agriculture, subsidizing 50% of the premium cost to make the insurance protection more accessible to climate-vulnerable horticulture farmers.
Agriculture plays a crucial role in Uzbekistan's economy, accounting for 24.3% of the national GDP and employing about 26% of the labor force. Fruit production has seen a 5.1% increase, with the country exporting over 1 million metric tons of fruits in 2024. Roughly 65% of agricultural production comes from dehqan farmers - or smallholder farmers - who occupy 13% of the cultivated land.
To mitigate the escalating impacts of climate changes and unpredictable weather patterns on farmers' crop yields, the "Agriculture Insurance Scheme for Horticulture Farmers in Uzbekistan" project was launched in 2023. With strong public-private cooperation between the Ministry of Agriculture of Uzbekistan, UNDP, Swiss Re, Europa Re, and local insurers Uzagrosugurta and Semurg, the first set of insurance products developed will protect cherry, grape and apricot crops against frost in 5 regions - Tashkent, Samarkand, Ferghana, Andijan and Namangan. The second phase of insurance products will also cover pomegranate, apple and walnut crops.
The climate risk crop insurance policies are being sold by Uzagrosugurta and Semurg. The first phase of establishing the agricultural insurance scheme has been accompanied by training and capacity building for local insurers, loss adjusters and government stakeholders that are working to strengthen the insurance sector. The goal is for more local insurers to distribute tailored agri-insurance in future phases.
On April 3rd 2025, the agriculture insurance products were presented to local insurers' sales force, government agencies and local farmer organizations to mark the start of and stimulate the sales process. The presentation of the agricultural products to a broader stakeholder group, including the Association of Professional Insurance Market Participants, the Hydrometeorological Service Centre and other agencies from the public and private sectors is part of the strategy to expand the reach of these climate-linked agri products, and scale up the financial protection to more regions and farmers.
Ilkhom Juraev, Head of Financing and Subsidising Department, Ministry of Agriculture of the Republic of Uzbekistan said: "Risks in the agricultural industry pose a serious threat to crop production, farmers' welfare and the economy of Uzbekistan. Given the high level of risks in agriculture, as well as their further growth due to climate change, the development of agro-insurance is one of the key ways to manage risks. I would like to note the importance for farmers to have the opportunity to insure their crops and invite insurance companies to jointly develop this area."
Sobir Hasanov, Head of Agricultural Insurance Department, "Uzagrosugurta" said: "Agroinsurance is an important area of development for the economy of Uzbekistan and one of the main methods of risk management, including climate risk management. For representatives of insurance companies and other industry-related agencies, participation in this scheme is both practical and as well as having theoretical value. On behalf of "Uzagrosugurta", we invite farmers of Uzbekistan to protect their harvest today."
Anas Fayyad Qarman, UNDP Deputy Resident Representative in Uzbekistan said: "This project shows how public and private partnerships can help small farmers better cope with climate risks. With UNDP's support, new agricultural insurance products were developed as part of wider efforts to strengthen Uzbekistan's growing insurance sector. UNDP is also helping the government of Uzbekistan draft key legislation, develop a disaster risk finance strategy, and include insurance and risk financing in its national climate and development plans."
Ekhosuehi Iyahen, Secretary General of the Insurance Development Forum, said:
"The launch of this pilot agricultural insurance scheme is a significant milestone in advancing climate resilience for smallholder farmers in Uzbekistan. It demonstrates the power of collaboration between the private, public and development sectors to deliver innovative risk finance solutions that protect livelihoods and build greater resilience for vulnerable nations. We sincerely thank Europa Re and Swiss Re for their technical expertise and commitment in working alongside local insurers, UNDP, and the Government of Uzbekistan to develop tailored insurance products that will support thousands of farmers in mitigating climate-related risks."
Dr. Annette Detken, Head of InsuResilience Solutions Fund, said:
"This initiative marks a significant milestone in strengthening climate resilience for Uzbekistan's deqhan farmers. By leveraging public-private collaboration, we are not only expanding access to insurance but also ensuring that smallholder farmers - who form the backbone of Uzbekistan's economy - have the financial protection needed to withstand climate shocks. The ISF is proud to support this effort, which aligns with our mission to enable sustainable climate risk financing solutions for vulnerable communities. We look forward to seeing these insurance products scale and provide tangible benefits to farmers across the country."
Through the Tripartite project, the National Agency for Prospective Projects of the Republic of Uzbekistan's (NAPP) has also been supported in engaging with the International Association of Insurance Supervisors (IAIS). Uzbekistan's prospective IAIS membership would mark a strategically significant step toward the development of the national insurance market, enhancing transparency, competitiveness, and regulatory oversight.