Inclusive Insurance

Most of Bolivia's population is exposed to various risks that may trigger situations of poverty; in addition, the country is located in a region that is highly vulnerable to the effects of climate change. During the previous phases, the project sought to motivate actors in the insurance market to implement inclusive and agricultural insurance; the exit phase seeks to consolidate the conditions enabling the innovative and sustainable operation of this insurance market.  

Country/region Topic Period Budget
Agriculture & food security
Climate change and environment
Agricultural financial services
Disaster risk reduction DRR
01.07.2020 - 30.09.2022
CHF  820’000

The main demographic and social indicators show that the Bolivian population totals around 11.5 million inhabitants, with an overall poverty rate (urban and rural), as of 2018, of 34.6%, which is considered high at the regional level. According to the International Labour Organization, the informality index of the Bolivian economy is 69% (2019). In a context of economic slowdown, the deep social and political crisis at the end of 2019, worsened by the COVID-19 pandemic, will have severe impacts on the country's economy, with negative consequences on poverty indicators.

Bolivia has a limited culture of taking out insurance, which is reflected in the low penetration of insurance (production/GDP), which in 2018 reached 1.55%, below the average penetration in Latin America which is higher than 3%. There are 19 personal and general insurance companies, some of which have been venturing into inclusive insurance. The regulatory aspects that enable harmonious development of inclusive insurance must still be implemented. Through the Agrarian Insurance Institute, the State is implementing an insurance scheme that operates in 144 municipalities affected by extreme poverty and the coverage of the Agrarian Insurance reaches eleven crops considered basic crops from a food security perspective. The Social and Economic Development Plan 2015-2020 envisages expanding insurance coverage with a universal and sustainable perspective.  


Overall goal

Contribute to the reduction of poverty and the improvement of food security by strengthening the resilience of the low-income population and reducing income losses, thanks to operation of the insurance market.

Project objective

Improve the business environment of the insurance sector, through coordinated actions between public and private actors, aimed at the successful development and market introduction of innovations in inclusive insurance suitable for the low-income population.

Target groups

-    20,000 people have access to inclusive insurance (40% women).

-    Agricultural producers who take out commercial insurance to protect 10,000 hectares of land.

Medium-term outcomes

Outcome 1. The project has contributed to the insurance market developing products that meet the needs for protection of low-income people, within the framework of a regulation to promote inclusive insurance.

Outcome 2. The development of commercial agricultural insurance has been encouraged in coordination with relevant public and private bodies, in order to generate innovative models that cover the agricultural production of small and medium-sized producers.


Expected results:  

Low-income people know the value of having a risk transfer tool and have access to innovative insurance tailored to their needs.

Commitment taken on by the insurance industry towards the development and implementation of Inclusive Insurance.

Insurance companies enter the commercial agricultural insurance sector with an innovative product for the Bolivian market.

Key players in the insurance sector (ABA or other entities) assume the role of promoters between supply and demand and are articulators of knowledge management to promote the development of inclusive insurance.

Awareness-raising actions are carried out and the design of insurance products related to the coverage of COVID-19 risks is promoted.

Results from previous phases:  

Innovation in insurance. More than 12,000 people were insured with inclusive life and accident insurance, which is innovative in terms of specific coverage of vulnerable groups.

Inclusive Insurance Committee. It has been possible to institutionalize operation of the Inclusive Insurance Committee made up of 8 insurance companies in coordination with the Bolivian Association of Insurers (ABA).

Education on Insurance. Using the training-of-trainers strategy, approximately 25,000 low-income people were educated on insurance.

Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
International or foreign NGO

Other partners
Fundación Profin, facilitator and implementing agency of the project.
Coordination with other projects and actors

SDC projects: Inclusive Markets, Promype, Resilient Andes, Bioculture, Life Without Violence.

Other: IDB

Budget Current phase Swiss budget CHF    820’000 Swiss disbursement to date CHF    758’617
Project phases Phase 3 01.07.2020 - 30.09.2022   (Current phase) Phase 2 01.11.2012 - 31.10.2020   (Completed) Phase 1 01.08.2010 - 31.10.2015   (Completed)