Micro-insurance: reducing the risks in rural areas (fr)

Publication year 2011
Publisher SDC

In the region of Tajra in Bolivia, grape vines stretch as far as the eye can see. Yet, every year, many small producers take on large debts to finance their future harvest. Unfortunately, the fruits of their labour are regularly endangered by hail, at times almost to the point of total destruction.

An innovative public-private partnership
In order to provide these producers with less precarious conditions of production, the Bolivian foundation PROFIN has made it its mission to develop and test innovating microfinance solutions. Emanating from an SDC programme, this foundation is at the origin of approximately 15 micro-insurance projects. It has, for example, enabled the establishment of an unprecedented partnership between the Municipality of Uriondo and a local microfinance institution in order to offer to wine growers a solution against the risks of hail. In this way, in 2009, some 187 producers took out for the first time a micro-insurance known as FTR (Risk Transfer Fund) for a total cover of USD 600,000. They additionally receive technical advice as to how they might reduce other risks to which their crops could be exposed.

Today, the PROFIN foundation and the SDC are working on new microfinance solutions adapted to the needs of the poor in rural areas, including solutions based on the public-private partnership model.