Barriers to financial access are present in the region, restricting effective adaptation to extreme weather events  . In 2014, the penetration rate of this type of insurance in the region averaged 0.03% of GDP, and a few countries dominate the market . Beyond these countries, some initiatives also exist in Uruguay, Paraguay, Chile and Ecuador. In most Latin American and Caribbean countries, the public sector plays an important role in providing insurance or reinsurance and coexists with private-sector companies . Insurance protections represent a strategy to transfer climate risk to protect the well-being of vulnerable small farmers and accelerate uptake  after a climate-related extreme weather event. Lack of finance and proper infrastructure is compounded by limited knowledge of sustainable farming practices and high rates of financial illiteracy  .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report