Crimson Capital News Details

May, 2011

Assessment of the Agricultural Insurance Market in Guatemala

In May, Crimson conducted a compressive assessment of the agricultural insurance market in Guatemala. The assessment reviewed regulations impacting the provision of insurance, the market demand for an agricultural insurance product, donor-funded projects to support the development of index-based weather insurance and the current product offerings of banks and insurance providers in the agricultural sector.

Findings revealed that banks and insurance companies view the agricultural sector as risky and that there is little lending to the sector and virtually no agricultural insurance currently on offer. Assessment recommendations include the development of a reinsurance capacity and use of financial instruments, such as a USAID Development Credit Authority (DCA) guarantee, to increase the availability and use of agricultural insurance in Guatemala.