Agricultural Insurance in Mesoamerica: An Opportunity to Deepen Rural Financial Markets

Abstract

This study analyses the opportunities and challenges presented by agricultural insurance instruments to deepen financial services in rural areas in a sustainable manner. 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.Financial Services, Rural Development, Agricultural Policy, Disasters, PUB