A project focusing on microfinance could help remove obstacles to micro-insurance or other risk transfer schemes in the agricultural sector. The project did not create a market for micro-insurance as envisaged. According to the government project completion report, local insurance companies were not interested because of the “general(ly) unfavorable financial conditions of the economy.” Consultants also recorded many of the typical grievances of the insured, e.g., the perception of an absence of tangible benefits, and many instances of compensation being withheld by insurers after insurable events. But in Sughd province, experience has been gained in introducing insurance products via the microfinance sector. This experience may be replicable in the project area, with the index-based agriculture insurance policy particularly suggested for consideration.
Building Climate Resilience in the Pyanj River Basin