Catastrophic Agricultural Insurance for Family Farming in Guatemala.

This financial instrument was created to strengthen the resilience of small producers to the occurrence of two types of climatic events: heavy rains and prolonged droughts. The parametric and catastrophe insurance was designed by the Microinsurance Catastrophe Risk Organisation (MiCRO) for the Ministry of Agriculture, Livestock and Food (MAGA) and is operated by the bank Crédito Hipotecario Nacional (CHN). This parametric insurance is automatically activated when excess rainfall or drought reaches agreed levels. The parameters are different for each populated area and the coverage periods consider the behavior of each of the country's climatic zones. The implementation of the insurance will be accompanied by financial education modules to promote holistic risk management.