Agricultural Insurance in Mesoamerica: an opportunity to deepen rural financial markets
This study analyses the opportunities and challenges presented by agricultural insurance instruments in the deepening of financial services in rural areas in Mesoamerica. It presents a public policy framework to guide the decision making process of public support and interventions. The focus is primarily on the role of insurance to financially manage (and transfer) agricultural production risks that are too large for self-insurance to cover, yet not catastrophic to the point that government and international disaster aid would be necessary.
Conclusion is that, in order to support the competitiveness of the agricultural sector in the light of increasing trade liberalization and natural hazard risks, agricultural insurance should be at the forefront of the set of financial instruments to be developed.