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.
- Limited experience with financial products including insurance.
- Overall lack of understanding of and interest in (climate) insurance among most stakeholders.
- Widespread lack of trust in insurance companies amongst the population.
- Lack of investigation and research with respect to financial risk management products and insurance in the country.
- Lack of qualified brokers/experts/actuaries.
- Lack of prevention and risk management strategies amongst the population and governments with respect to the “El Niño” phenomenon and climate risk
