On Thursday 2nd May 2024, the Microinsurance Network (MiN) and the United Nations Development Programme (UNDP) brought together industry leaders, government representatives, and members of the financial inclusion community, to discuss the role of inclusive insurance, and importantly, how modern solutions are critical to building the financial resilience of those facing the most damaging environmental and societal risks.
Held at the Centre du Domaine de la Pastorale in Geneva, Switzerland, the event was focused on the launch of The Landscape of Microinsurance 2023 Report. Titled “Bridging Gaps and Building Futures: Microinsurance in 2023 and the Path to the SDGs”, it was well-attended, both in-person and online.
The Landscape of Microinsurance Report 2023, covering 1,040 insurance products reported by 294 insurance providers in 36 countries across Africa, Asia, Latin America, and the Caribbean, is the most comprehensive inclusive insurance study to date. The report provides data on the latest inclusive insurance products and services, and insights into the current market and emerging trends - the key findings of which formed the foundation for the morning’s conference.
Connecting to a bigger ecosystem
During the launch event, speakers drew heavily on the report’s findings and intangible relationship with the UN’s Sustainable Development Goals (SDGs). Achim Steiner, UNDP Administrator, opened the morning's conference with his keynote address. He shed light on the protection gap and explained how financial safety nets like insurance can help people recover following a crisis. Steiner stated, "The facts are irrefutable; insurance and risk financing save lives, drive growth, and build more resilient economies, accelerating progress across the global goals."
H.E. Ambassador Marc Bichler, Permanent Representative of Luxembourg to the UN Office in Geneva and the second keynote speaker, acknowledged such sentiment. As a core funding provider for both the MiN and The Landscape of Microinsurance Report, Bichler reaffirmed the Government of Luxembourg’s commitment to the microinsurance sector. He also shone the spotlight on projects currently in implementation in this field, such as the Tripartite Agreement, a partnership between the Insurance Development Forum, UNDP, and BMZ, which aims to develop effective climate risk financing and insurance programmes to help build resilience of low-income populations against the impacts of climate and environmental risks. As Bichler reiterated, “There is no sustainable development without sustainable finance.”
H.E. Ambassador Abiodun Richards Adejola, Permanent Representative of the Federal Republic of Nigeria to the UN Office in Geneva, continued this topic by sharing several insights from the report. Adejola discussed the roll-out of flood protection cover in Lagos State, Nigeria, which he expressed is helping meet multiple SDGs. H.E. Ambassador Usana Berananda, Permanent Representative of Thailand to the U.N. Office in Geneva, drove the conversation further and highlighted how insurance can be used as both a risk management and mitigation tool. However, as all speakers expressed, stronger partnerships and public-private collaborations will be critical to really grow this market.
With data, we can move forward
The Landscape of Microinsurance Report itself is an example of how collaboration and partnerships can bring positive results, a point highlighted by Laura Elena Rosado, Vice Chair, MiN, Head of Strategy and Performance Management, AXA Emerging Customers, who delivered a presentation on the key findings of the 2023 Landscape report during the event. Sharing data and insights from the report, Laura emphasised the importance of knowledge sharing and collaboration – which for the 2023 report had been achieved through voluntary data disclosures by microinsurance providers and distributors in many countries supported by insurance regulators and associations. Only with their input can information on best practices, challenges, and even barriers be shared with the wider insurance network, which will help develop products and solutions to emerging and existing challenges.
The event’s panel discussion – moderated by Jan Kellett, Global and Corporate Lead for Insurance and Risk Finance, and Head, Insurance and Risk Finance Facility, UNDP – delved deeper into how the data and findings from The Landscape of Microinsurance can be used by public and private actors committed to inclusive insurance and financial inclusion. As Jan stressed, “Public-private partnerships are key to scaling insurance and risk finance solutions, whether for families, farmers or countries; and the Landscape Report is a critical piece of this puzzle.”
Jan was joined by Sitara Merchant, CEO of Swiss Capacity Building Facility, who, among other topics, discussed how “data is paramount when developing a product, when looking at risk, and when assessing claims.” As Sitara said, “without data we just cannot move forward.”
Dr. Tarek Seif, Executive Director, Financial Services Institute, Acting Executive Director, Egyptian Institute of Directors, The Financial Regulatory Authority, continued this conversation, bringing attention to the critical role of government legislation, and how in Egypt there is an “opportunity to develop the microinsurance market, to develop more products, and to develop more underwriting capacity.” As the panel agreed, technology is key to helping create such an enabling environment.
Dirk Reinhard, Vice Chair, Munich Re Foundation, furthered this conversation, drawing attention to the progress in new tools and distribution channels and how these can help expand the horizons of the sector to offer more than just climate protection. As Dirk said, “we need to listen to the clients, to use the tools we have; yes, we need to focus on climate risk, but we cannot forget the fundamentals of health, education and life.”
Sheila Byenkya, Head of Inclusive Insurance at ZEP-RE, took the lead in the final presentation of the morning, by sharing the results from the Horn of Africa De-risking, Inclusion, and Value Enhancement (DRIVE) project, which specifically addresses distribution challenges – an area highlighted in the 2023 report.
Data is the new gold
Closing the event, Lorenzo Chan Jr., Chair of MiN, and President and CEO of Pioneer Life Inc., reiterated the speaker's sentiments, emphasising how microinsurance is not there to address all losses following an event, but more to enable people to rebuild and resume their lives; the goal is to make setbacks “temporary”, and not permanent. As Lorenzo said, it is about helping these people bounce back without "starting from ground zero."
“Resilience is about ensuring access to effective risk management tools, which includes insurance; it is about knowledge sharing,” Lorenzo explained, “I do not believe that there is a scarcity of insurers; there is a shortage of those willing to look beyond the traditional business case.
“However, by playing to their strengths and investing in inclusive insurance, insurers can contribute to emerging markets’ long-term development and stability; they can build resilience, support economic stability, and close the protection gap. The industry’s target market has always been limited to those who can afford it rather than those who need it most. It is time that we served both.”