Uzbekistan’s economy is highly dependent on agriculture, which is increasingly at risk from droughts, high temperatures, heatwaves, precipitation, mudflows, floods, and avalanches, further exacerbated by climate change. In line with its commitments to the Getting Ahead of Disasters Charter, UNDP strengthens the capacity of Uzbekistan’s insurance industry while helping smallholder farmers better cope with climate risks.
Agriculture accounts for 24.3% of the national GDP and employs about 26% of the labor force. Fruit production has seen a 5.1% increase, with the country exporting over 1 million metric tons of fruit in 2024.
Dehqan farmers—or smallholder farmers—contribute roughly 65% to the gross agricultural output but face escalating impacts of unpredictable weather patterns on crop yields. To mitigate these impacts of climate change on Uzbekistan’s dehqanfarmers, the “Agriculture Insurance Scheme for Horticulture Farmers in Uzbekistan” project was launched in 2023, under the framework of the Tripartite Agreement between UNDP, the German Government, the Insurance Development Forum (IDF) and the Ministry of Agriculture of Uzbekistan. The project supports UNDP’s implementation of the Getting Ahead of Disasters Charter, especially Principle 4, by improving the delivery systems so the most at-risk communities and most marginalised people get timely support before, during, and after disasters.
With strong public-private cooperation between the Ministry of Agriculture of Uzbekistan, UNDP, Swiss Re, Europa Re, and local insurers Uzagrosugurta and Semurg, the first set of insurance products developed will protect cherry, grape and apricot crops against frost in 5 regions: Tashkent, Samarkand, Ferghana, Andijan and Namangan. The second phase of insurance products will also cover pomegranate, apple and walnut crops.
These insurance policies are being sold by Uzagrosugurta and Semurg and are expected to benefit 16,000 fruit farmers and their families in the first year, with the government of Uzbekistan subsidising 50% of the premiums to reduce the cost of the insurance policies for climate-vulnerable fruit farmers. Through working with local insurers, UNDP strengthens the enabling environment for local actors to engage in insurance solutions for climate and disaster risks as highlighted in Principle 5.
To expand the reach of climate-linked agri products and scale the financial protection to more regions and farmers, the first phase of the agricultural insurance scheme is being accompanied by training and capacity building for local insurers, loss adjusters and government stakeholders that are working to strengthen the insurance sector. The goal is for the product to be distributed by additional local insurers in the coming years.
The design and launch of the new agricultural insurance products is anchored within broader efforts to increase the capacity of Uzbekistan’s nascent insurance industry and help smallholder farmers better cope with climate risks.
UNDP is assisting the government with the development of a disaster risk finance strategy, supporting the integration of insurance and risk finance within national climate policy and development planning frameworks. UNDP also supported the government of Uzbekistan with drafting a critical piece of legislation to improve access to insurance services and ensure transparency in insurance organisations. Through these efforts, UNDP ensures coherent and coordinated finance across climate change adaptation, development, and the disaster risk management cycle over the long-term in line with Principle 2 of the Getting Ahead of Disasters Charter.
Through the Tripartite project, the National Agency for Prospective Projects of the Republic of Uzbekistan’s (NAPP) is now engaging with the International Association of Insurance Supervisors (IAIS). Uzbekistan’s prospective IAIS membership would mark a strategically significant step toward the development of the national insurance market, enhancing transparency, competitiveness, and regulatory oversight.
UNDP Insurance and Risk Finance Facility
The United Nations Development Programme (UNDP) is the UN’s lead development agency, working in 170 countries to eradicate poverty and reduce inequality. UNDP’s Insurance and Risk Finance Facility is charting new pathways to build resilience, incentivise growth and safeguard development. Housed within UNDP’s Sustainable Finance Hub, the Facility is using insurance and risk transfer to increase the financial resilience of countries, communities, households, businesses, nature and food systems, and is thus fully aligned with the Principles of the Getting Ahead of Disasters Charter. Learn more at www.irff.undp.org.
