22 August, 2024
Alejandra Chavarria Moreno, Lawyer and Master in Public Policy
In a world where economic inequality persists as a global challenge, the insurance sector emerges as an unexpected ally in the pursuit of a more equitable future. This revelation was the core of my experience in the recent "Insurance for Development" course by the International Labour Organization (ILO), which I attended thanks to a scholarship from the Microinsurance Network.
The course challenged the traditional perception of insurance as mere financial instruments. Instead, it presented us with a revolutionary vision: insurance as a catalyst for social change. This perspective is particularly relevant for countries with a strong commitment to equity and collective well-being, such as Costa Rica.
"Insurance is not just about contracts; it is a powerful tool that can transform lives," was one of the key messages that resonated throughout the program. This idea materialized through case studies from around the world, where innovative insurance products have achieved significant impacts in vulnerable communities.
A central concept of the course was the need to balance commercial viability with social impact. This "double imperative" poses a stimulating challenge for the sector: How can we design products that are financially sustainable and, at the same time, accessible to those who need them most? The answer, according to ILO experts, lies in innovation and cross-sector collaboration. From microinsurance for farmers to flexible health policies for informal workers, the possibilities are vast and promising.
For nations committed to social progress, these ideas open up a range of opportunities. There is potential to lead in the development of a truly inclusive insurance ecosystem. From a regulatory perspective, key areas of action are emerging: developing regulatory frameworks that encourage innovation in insurance products with social impact, promoting strategic partnerships between insurers, fintechs, and development organizations to create innovative solutions, and implementing financial education programs to increase understanding and trust in insurance among the population.
The ILO course was not just an educational experience; it was a call to action. We have a responsibility to create an enabling environment for inclusive insurance to flourish. The potential of insurance to drive sustainable development is immense, and we have the opportunity to turn this potential into reality, creating an insurance sector that not only protects individuals but also strengthens the social fabric of our nations.
The road ahead is challenging, but the promise of a more equitable and resilient future makes it immensely valuable. It is time to view insurance not just as a financial product but as a powerful tool for social progress. The future can be safer, fairer, and more prosperous. And insurance can be the key to achieving it.