As part of the Insurance Development Forum’s 10-year anniversary series, we speak with Nadica Jovanovska Boshkovska, Chief Project Officer at Europa Re, and Esther Baur Reinecke, Head Europe and Director, Public Sector Solutions at Swiss Re, about their work on the IDF’s Tripartite Agreement Programme project for Uzbekistan in collaboration with the United Nations Development Programme (UNDP) and the German Federal Ministry for Economic Cooperation and Development (BMZ) through the Insuresilience Solutions Fund (ISF).
They share what was needed to make this cross-sector project work and what impact it is expected to have, not only for the resilience of smallholder farmers in the short term, but also for the local insurance market and the country, in the longer term.
From your experience in the project, what key risks are smallholder horticulture farmers in Uzbekistan facing, particularly related to climate impacts such as frost?
Esther: In Uzbekistan, the spring frost risk is of big concern to the smallholder horticulture farmers, and it is increasing due to climate change. The winters are getting warmer and the crops become more vulnerable due to lack of winter hibernation. Due to natural variability, there can still be frost days also in spring time, however. In combination with the mild winters and the more advanced blooming of the flowers, this can lead to a higher risk of spring frost losses. Horticulture farmers have been confirming the increase of losses from spring frost in recent years. Additionally, climate change brings a higher vulnerability to the irrigation supply and in stronger heat waves that are especially harmful for the fruit crops at flowering and early fruit development stages.
The project introduced a climate risk crop insurance scheme tailored to six high-value horticultural crops. What were the most important considerations in designing a product that would work for Uzbekistan’s agricultural context?
Esther: The project team undertook a profound climate and crop data analysis and discussions with local stakeholders in order to determine the pilot crops – grape, apricot, cherry in the first year, followed by apple, pomegranate, walnuts in the second year. These fruits form the economic foundation at the country level and at the farm community level in Uzbekistan. We carefully chose the insurable climate risks – such as frost, hail, excessive rain, strong wind – which are fairly sensitive for the farmers in Uzbekistan based on insurability, data availability and affordability considerations. We will potentially investigate the relevance and insurability of some further climate related patterns (like heatwaves) in the future, in collaboration with local scientists and farmers.
As usual for the Tripartite Programme, this initiative brought together government, international development partners, private insurers, and technical experts. What stood out to you about the cross-sector collaboration, and what made it work effectively?
Nadica: Yes, absolutely — this part of the project implementation was truly fascinating. What really stood out to me was how naturally the different sectors aligned once we created a common language and understanding. Agricultural insurance sits right at the crossroads of finance, agriculture, economics, and climate science, so at the beginning everyone came with their own perspective. Government institutions were focused on protecting farmers, insurers were focused on financial sustainability, development partners brought international standards, and technical experts looked at scientific accuracy. Our biggest task was to bridge these perspectives. We invested a lot of effort into structured communication and continuous information sharing. This wasn’t just about presenting materials — it involved translating concepts across sectors, simplifying technical elements, and explaining why each piece mattered for the success of the scheme.
Capacity building became the glue that held everything together. Through workshops, training sessions, and hands-on discussions, we saw stakeholders gradually move from being cautious to becoming fully engaged. This shared learning process built strong ownership and trust, making our collaboration truly effective. In the end, what made it work was clarity, persistence, and respect for each stakeholder’s expertise. Once everyone understood their role in the bigger picture, the project started to move forward very smoothly.
A major component of the project focused on strengthening local capacity; from insurers and adjusters to government institutions. What impact do you expect this capacity-building to have in the long term?
Nadica: A major component of the project was indeed the strengthening of local capacity, and this is where I see some of the most meaningful and lasting impacts. Through the training activities, we transferred highly specialized scientific knowledge and international experience to insurers, agronomists, loss adjusters, and government institutions in the country. For many of them, this was the first time they had access to structured, professional training in modern agricultural insurance. In the long run, I expect this to shape how agricultural risk is understood and managed in Uzbekistan. We didn’t only train people — we also created methodological documents, guidelines, and tools that can serve as a national reference for years to come. This gives the system continuity, even as staff or institutions change.
Another important outcome is the strengthened technical capacity within local insurance companies. The skills and expertise that their teams gained will remain embedded in the market, which supports sustainable growth without relying on external experts. The strong interest shown by government institutions in international learning is another positive signal that this capacity will continue to expand. Overall, I believe this investment in capacity-building, which is a strong focus of the IDF, will lead to a more professional, resilient, and self-sustaining agricultural insurance ecosystem — one that is capable of addressing climate risks and supporting farmers more effectively in the future.
The scheme was piloted in April 2025 across five regions. What early insights or feedback have emerged from farmers, insurers, or government stakeholders?
Esther: The first few insurance policies were signed in April 2025, which were the result of an awareness raising and marketing campaign by the involved local insurers and the Ministry of Agriculture, which started already in spring 2024. Our local partners noticed sincere interest from the farmers and increased risk awareness. Even after the insurance sales window was closed, farmers kept approaching insurers and the Ministry of Agriculture pointing to the climate patterns that were damaging to the crop. Key to scaling the program and increasing sales is the timely start of marketing and sales activities and the timely confirmation of government subsidies. If the latter had come earlier in 2025, the insurance sales would have been much higher already in 2025, reflecting the farmers’ interest and trust.
How do you see this project influencing the future development of Uzbekistan’s domestic insurance market, especially in terms of climate resilience and agricultural risk management?
Nadica: This project is arriving at a moment when Uzbekistan’s insurance market is undergoing a major transformation, and that makes its influence even more significant. Historically, the market operated under a more traditional structure. Through this initiative, we introduced modern, internationally aligned approaches — from underwriting to product design and risk assessment — that were not widely used in the country before. I believe this will have a strong ripple effect. Agricultural insurance is often the entry point for advancing broader climate-resilience practices in domestic markets. Once insurers gain experience with climate-related risks in agriculture, they naturally start adopting similar methodologies for property and catastrophe insurance. We already see the Uzbekistan Government taking steps in this direction, working to restructure NatCat and property insurance markets.
Another long-term impact is that farmers and insurers are becoming more aware of climate-related vulnerabilities. This drives demand for better risk management tools and encourages insurers to innovate and invest in new products. In a country where agriculture is so central to livelihoods, this shift is essential. Overall, I see this project as a catalyst. It introduces new standards, raises expectations, and creates momentum for a more sophisticated, climate-resilient insurance market that can serve not only farmers, but eventually households, businesses, and the wider economy.
The project has been designed with potential for national scale-up. What do you see as the most important next steps to ensure long-term sustainability and wider adoption?
Esther: The national agriculture insurance scale up requires dedicated government commitment. In fact, the UNDP and the government have been working on the legislative and regulatory framework and the process of digitalization in parallel with this project. And the outcome of the insurance side of the project (product design, methodological documentation, capacity building and knowledge transfer) has been also incorporated into the government process. In mid-2025, a new agricultural insurance law was passed, which – among other aspects – foresees the creation of a dedicated agricultural insurance fund and provides the framework for the role of the local insurance companies and for the government subsidies through a digital government platform. The necessary implementation regulation is underway.
As soon as the Agricultural Insurance Fund becomes operational, the agricultural insurance will be scaled up significantly – geographically and in terms of crops covered. It will be important that the government supports (e.g. with subsidies) the commercial insurance process undertaken by insurers where necessary.
We believe that the foundations for a sustainable agricultural insurance system have been built. The envisaged institutionalized government support will be much needed for faster and bigger scaling. Now, it’s all about implementing the legislative framework and scaling up not only sales, but also technical underwriting and loss adjustment capabilities to ensure long-term sustainability of agricultural insurance in Uzbekistan.
From your own experience working on this initiative, what has been the most meaningful insight or learning you can share?
Nadica: One of the most meaningful insights for me has been the absolute importance of communication. In a project that brings together so many different sectors — government, insurers, agronomists, development partners — clear and patient communication can make the difference between progress and misunderstanding. I learned that technical knowledge alone is not enough; what really drives success is the ability to translate that knowledge in a way that resonates with each stakeholder. Another important learning was the value of combining scientific rigor with respect for local practices. When we approached the work with evidence, transparency, and consistency — while also acknowledging local experience and traditions — we saw much stronger engagement and trust from partners on the ground. Overall, the experience reinforced for me that sustainable change doesn’t come from one-off interventions. It comes from continuous dialogue, shared learning, and a respectful, collaborative approach. When these elements are in place, even complex reforms, necessary to enable the use of insurance, become possible.
