Implementation update: Insurance development forum inclusive insurance working group

The Insurance Development Forum (IDF) Inclusive Insurance Working Group (IIWG) plays a vital role in advancing the inclusive growth of emerging economies and bolstering the resilience of vulnerable communities through tailored risk transfer solutions. This mission aligns with the Sustainable Development Goals (SDGs), the targets of the InsuResilience Global Partnership’s ‘Vision 2025’ and the V-20-G20 of extending coverage against climate and disaster shocks by pre-arranged risk finance and insurance to 500 million poor and vulnerable people, of which 150 million people should be covered through microinsurance.

This update follows the 15th Official Meeting of the IDF Steering Committee held on Wednesday 27th September 2023, and summarises the IIWG’s ongoing activities under the key pillars of implementation, engagement and advocacy.

Implementation

The IIWG helps foster public-private partnerships and regulatory support to scale projects, share knowledge, and promote collaboration within the Climate and Disaster Risk Finance and Insurance community.

We are actively implementing this by convening key stakeholders in focus countries to facilitate diagnostic assessments and develop comprehensive roadmaps for scaling up inclusive insurance projects. These market-driven roadmaps encompass initiatives for technical assistance, regulation, insurance education, reinsurance, and more.

Our Inclusive Insurance Workshops are a vital part of being able to deliver these roadmaps, which have to date collectively engaged with more than 500 participants. These workshops include:

Philippines, August 2023

• Organised by the IDF and the Microinsurance Network, in partnership with the Philippine Insurers and Reinsurers Association (PIRA), Philippine Life Insurance Association, Inc. (Plia) and the Insurance Institute for Asia and the Pacific, Inc (IIAP). 
• The aim of the workshop was to facilitate the formulation of diagnostic assessments and the development of comprehensive roadmaps aimed at scaling up inclusive insurance projects.
• Over 220 participants attended the workshop, either virtually or in person, spanning from representatives of the private sector, development agencies to government bodies
• During the workshops, attendees learned more about the IDF, reflected on inclusive insurance customer personas and the challenges to reach them, and worked on potential collaborative implementation solutions.
• At the end of the workshop, we were able to generate a market-driven country roadmap encompassing initiatives for technical assistance, regulation, reinsurance, smallholder farmers, MSMEs, fisherfolk and others.

Senegal, July and September 2023

• Inclusive Insurance session organised by the UNDP Insurance and Risk Financing Facility and MIC@Milliman in partnership with the IDF and the Microinsurance Network and support from the World Bank Group’s Global Index Insurance Facility (GIIF).
• The aim of the session within UNDP’s country workshop was to facilitate the formulation of diagnostic assessments and the development of comprehensive roadmaps aimed at scaling up inclusive insurance projects.
• The session gathered a diverse group of over 50 stakeholders, including regulatory authorities, insurance industry representatives, development partners, and experts in the field of inclusive insurance. During the session, attendees performed a SWOT analysis of the inclusive insurance market in the country and came up with recommendations to address the existing gaps.
• At the end of the session, we were able to generate a market-driven country roadmap encompassing initiatives for technical assistance, regulation and training, insurance education, urban population and SMEs, smallholder farmers, fisherfolk and others.
• An implementation update summarising the IDF in-country engagement in Senegal has been published to transparently inform about the activities supported by UNDP and promote further engagement of interested parties.
• A validation session was held in September to present the key recommendations based on the outputs of the country workshop and get endorsement from key local stakeholders ahead of the implementation of a country taskforce.

Kenya, September 2022

• Held in collaboration with the Microinsurance Network and support from the UNDP Insurance and Risk Financing Facility.
• At the end of the workshop, we were able to generate a country roadmap comprising five distinct work streams. These work streams will collectively contribute to breaking down barriers to inclusive insurance, fostering local capacity, and promoting innovative new insurance products and schemes. They include: 
• Technical Assistance to secure funding and technical support for a digital microinsurance distribution platform and an Open Finance framework.
• Develop comprehensive coverages for Smallholder Farmers, bundling health, life, and pension products with existing agricultural schemes.
• Expand insurance offerings for Micro, Small, and Medium Enterprises (MSMEs), focusing on climate-related events and new distribution channels.
• Review regulations and advocate for reforms.
• Develop an Insurance Education Programme to enhance financial literacy.
• The Country Gap Assessment and Roadmap of Activities were validated by individual key stakeholders, such as the Insurance Regulatory Authority, the Kenyan Insurance Association, as well as by a broader panel of participants in the virtual meeting held on March 2023.
• The Country Roadmap was also presented and next steps were discussed at the 8th Eastern and Southern Africa Regional Conference on Inclusive Insurance, organised by Munich Re Foundation with the local Regulatory Authority, from 24 – 26 April 2023, in Nairobi.
• In a significant development, the Insurance Regulatory Authority of Kenya has agreed to spearhead the Country Taskforce, as proposed by the IDF IIWG. This Taskforce will be responsible for implementing the Country Roadmap, which was developed during the IDF-MiN Country Workshop and subsequent engagements. Currently, the Insurance Regulatory Authority is in the process of inviting key industry players to nominate representatives who will contribute to the activities of the Country Taskforce.
• An implementation update summarizing the IDF in-country engagement in Kenya has been published to transparently inform about the activities and promote further engagement of interested parties.

Indonesia, April 2022

• Virtual workshop organised by the IDF and the Microinsurance Network, with the support of the UNDP Insurance and Risk Financing Facility.
• The aim of the workshop was to take stock of existing inclusive insurance project and active players in this space in Indonesia.
• The Workshop had approximately 150 participants from 37 different countries. Approximately 30% of the participants were from Indonesia. Overall, the workshop had representatives from 91 different organisations. During the workshop, attendees learned more about the inclusive insurance market in Indonesia, and next steps to further scaling this sector. 
• The next step is an in-person meeting in Indonesia to facilitate the formulation of diagnostic assessments and the development of comprehensive roadmaps aimed at scaling up inclusive insurance projects.

Engagement

Building upon the experience and success of these workshops, the IIWG is now collaborating with the Global Shield Secretariat to replicate this approach for mapping inclusive insurance stakeholders, assessing ongoing projects, and identifying interventions within pathfinder country requests for support under the Global Shield against Climate Risks.

The IIWG is also exploring a platform to facilitate public-private collaboration on inclusive insurance solutions, supporting projects that address the demand for life and health insurance in the face of climate change impacts and promote adaptation. Initial discussions have taken place with the Swiss Capacity Building Facility, which is a member of the IIWG. The envisioned platform aims to pool funding from various donors, directing support towards solutions emerging from the IIWG, provided they meet specific criteria. This platform is positioned as a supplementary and potential collaborator with initiatives such as the Global Shield against Climate Risks and the InsuResilience Solutions Fund (ISF). It not only widens the scope of support for life and health projects but also diversifies funding sources and technical assistance in the climate resilience domain.

Advocacy

The IIWG remains committed to advancing inclusive insurance for vulnerable communities and contributing to the global climate and disaster risk finance and insurance agenda. As we move forward, our focus will be on scaling up inclusive insurance projects, expanding our collaborations – particularly those within the IDF Sovereign and Humanitarian Solutions Working Group – and leveraging innovative financial mechanisms to enhance resilience and financial inclusion, with a particular emphasis on addressing health, life and other property and casualty risks that are directly or indirectly impacted by climate. This approach underscores the overarching impact of climate on people’s livelihoods and the interconnectedness of all risk segments, from which ensues the importance of private-public cooperation.

We would like to thank everyone involved in the IIWG and the in-country workshops for your time, commitment and dedication to helping maximise the impact and efficiency of inclusive insurance projects. Together, we aim to create a more inclusive and sustainable world where insurance plays a pivotal role in protecting those who need it the most.

Find out more and get involved.