On 29 January 2026, the OECD organized an online technical dialogue on financing mechanisms for climate-resilient agriculture in Armenia, with a focus on agricultural insurance and climate risk management under PROGRESS project. The workshop built on the OECD stocktaking analysis completed in October 2025, which reviewed existing financing instruments for climate change adaptation and resilience in Armenia’s agricultural sector.

The workshop brought together around 35 representatives from Armenian public institutions, financial regulators, insurance providers, development partners, international financial institutions, and technical experts to discuss how agricultural insurance can serve as a key financing and de-risking tool for climate resilience. Discussions examined the effectiveness of agricultural insurance as a de-risking mechanism under increasing climate variability, with particular attention to incentive structures, risk layering, and the division of responsibilities between public authorities, private insurers, and farmers.

Experts from the OECD and UNDP highlighted core design challenges, including moral hazard, asymmetric information, and the limitations of premium subsidies as a standalone policy tool. Participants discussed the potential role of index-based and parametric insurance products in reducing information asymmetries, as well as the importance of embedding insurance schemes within broader agricultural risk management and climate adaptation frameworks. International experience was shared through Spain’s public–private agricultural insurance system, illustrating governance arrangements, risk-sharing mechanisms, and ongoing adaptive reforms in response to rising climate-related losses.

The dialogue confirmed that agricultural insurance is a necessary but not sufficient tool for building climate resilience, and that effective systems require coherent policy design, strong data foundations, sustainable public support, and integration with broader agricultural and climate strategies. The workshop also served as an input into Armenia’s ongoing review of its agricultural insurance system, with participants expressing strong interest in continued international cooperation.