Cundinamarca launches parametric insurance for small farmers

The Cundinamarca government has launched a pilot parametric insurance program to protect 521 small-scale agricultural producers from water scarcity caused by the El Niño phenomenon. The initiative targets farmers in the municipalities of Villapinzón, Sesquilé, and Suesca.

Unlike traditional insurance, this parametric model activates automatically when specific climate indicators reach predefined thresholds, eliminating the need for individual property inspections and allowing for faster access to funds. Each participating producer is set to receive 4,634,000 Colombian pesos to mitigate the impact of drought and reduced rainfall.

The program is a collaborative effort involving FINAGRO, the Ministry of Agriculture and Rural Development, the German Embassy, and the United Nations Development Programme (UNDP). Following the first year of implementation, the Departmental Secretariat of the Peasantry will evaluate the results to determine if the tool can be extended to other municipalities.