Peru: Financial Literacy

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The Peruvian agricultural sector, which is fundamentally important to the national economy, is particularly affected by natural hazards caused by climate change. Insurance as a  possible risk management strategy has received only little attention so far (both by clients and by the industry) due to the following reasons.
  1. Limited experience with financial products including insurance.
  2. Overall lack of understanding of and interest in (climate) insurance among most stakeholders.
  3. Widespread lack of trust in insurance companies amongst the population. 
  4. Lack of investigation and research with respect to financial risk management products and insurance in the country.
  5. Lack of qualified brokers/experts/actuaries.
  6. Lack of prevention and risk management strategies amongst the population and governments with respect to the “El Niño” phenomenon and climate risk