Ecuador has contracted its first parametric agricultural insurance policies, benefitting up to 10,000 people in smallholder rice and maize farming households against extreme rainfall and drought risk, marking a major milestone for the Tripartite Agreement Programme, a public-private partnership between the Insurance Development Forum (IDF), the United Nations Development Programme (UNDP), and the German Federal Ministry for Economic Cooperation and Development (BMZ) through the InsuResilience Solutions Fund (ISF).
Launched in 2023 and led locally by Ecuador’s Ministry of Agriculture, Livestock and Fisheries (MAGP), the project has focused on developing parametric insurance solutions that trigger automatic payouts when rainfall exceeds predefined thresholds or when drought conditions persist beyond set limits.
The two new products, covering extreme rainfall and drought risk, were developed by IDF member organisations including AXA Climate, Guy Carpenter México Intermediario de Reaseguro S.A de C.V, and Blue Marble, in collaboration with MAGP, with local insurer Hispana de Seguros acting as the policy implementer on the ground.
“The parametric policies, now live, are designed to deliver faster and transparent insurance payouts, helping farming families recover quickly from climate events and reinvest in subsequent planting cycles,” the IDF explained.
Product placement was supported by premium financing from the ISF for the initial coverage period.
As a result, 2,511 smallholder rice and yellow maize producers in the climate-vulnerable provinces of Guayas, Los Ríos, Manabí and Loja reportedly have coverage for the first planting cycle (January – May 2026), of which 44% are women smallholders, and 15% are young people, up to 29 years old.
It is expected that at least 300 more producers will have coverage for the second cycle (July – November 2026), with different climatic conditions taken into account.
Juan Carlos Vega, Ecuador’s Minister of Agriculture, Livestock and Fisheries, commented on the news, “These parametric insurance policies align with our commitment to provide smallholder farmers with tools that strengthen their sustainability, especially in the face of rising climate change challenges. It is a tool that financially protects them from climate risks and contributes to our country’s food sovereignty.”
Dr. Katharina Stasch, Director-General for Multilateral Development Policy; Transformation; Climate, German Federal Ministry for Economic Cooperation and Development (BMZ) said, “As climate risks continue to rise, collaboration between government, insurance and development partners is more critical than ever.
“The landmark insurance policies in Ecuador are an example of how countries can unlock resilience through insurance and risk management, creating a win-win where smallholder farmers are protected, local insurance markets strengthened and the country’s agricultural sector bolstered against risks.”
Dr. Nerea Vadillo, AXA Climate Public Sector Technical Lead / IDF Ecuador Project Co-Lead, noted, “Through the Tripartite Agreement Programme, IDF members have helped deliver a solution that protects vulnerable farmers on the ground today while strengthening Ecuador’s long-term financial resilience to climate risk.
“This is what building future-ready nations looks like: scalable, country-led solutions that enable faster recovery, informed decision-making, and greater resilience for those most exposed to climate shocks.”
Marcos Neto, UN Assistant Secretary-General and Director of UNDP’s Bureau for Policy and Programme Support, added, “This milestone in Ecuador demonstrates how insurance can be used as a powerful tool for inclusive and climate-resilient development. As countries face rising climate threats, Ecuador’s model offers a scalable and sustainable pathway for governments to protect smallholder farmers and their substantial contributions to the economy and food security.”
Dr. Annette Detken, Head of InsuResilience Solutions Fund (ISF), observed, “This innovative public-private partnership demonstrates how government leadership, industry expertise, and development finance can come together to build scalable solutions for the most vulnerable.
“With these two pioneering policies now live, financial resources can flow quickly and predictably to farmers when drought and floods strike, helping to safeguard lives and livelihoods.”
Inka Mattila, UNDP Ecuador Resident Representative, said, “This insurance not only protects crops, it also protects the dreams and hard work of thousands of rural families who feed the country. We are sowing trust to reap resilience.”
