Innovations in rural and agricultural finance: New approaches for index insurance

ENSO insurance in Peru

Jerry Skees, Benjamin Collier
2020 vision focus brief

The El Niño Southern Oscillation (ENSO) is a climate event associated with warming sea surface temperatures in the Pacific Ocean. In years of extreme El Niño events, areas in northern Peru experience catastrophic flooding. As of 2010, it is possible for stakeholders in northern Peru to purchase a new form of insurance that pays out just as flooding begins and stakeholders begin incurring extra costs and consequential losses.