REDSOL – Red Solidaria de Microseguro

RedSol liaises between community organizations and the insurance industry. It helps the former understand the risk management needs of its members, and negotiates with insurers to develop and offer relevant products to the rural poor. In order to adapt the self-insurance funds concept to low income farmers, RedSol had to understand that the nature of the group structure design requires a level of scale for both insurance pooling and for the purposes of expenses being covered cost-effectively. As a result, relatively few larger scale producers in the same locality or region can form a “fund” large enough to participate in the scheme. Small-scale producers are not excluded from the scheme, but their natural low scale and dispersion nature makes it difficult for them to participate in such structures.