Making Climate Risk Microinsurance Work

Guatemala is particularly vulnerable to natural hazards, especially earthquakes and hurricanes, and the country’s high levels of poverty and inequality exacerbate the impacts of these climate risks. This combination presents a need for insurance protection for low-income populations in the country.

In 2017, Guatemalan insurance company Aseguradora Rural and Barbados-based technical assistance provider Microinsurance Catastrophe Risk Organisation (MiCRO) jointly launched an insurance product called Esfuerzo Seguro. Esfuerzo Seguro is a holistic risk management solution that protects microentrepreneurs and smallholder farmers against business interruption caused by earthquakes, droughts, and / or severe rainfall.

This case study captures Aseguradora Rural and MiCRO's journey of offering climate risk microinsurance, including details on the delivery model employed, financial performance, and key learnings.