Capacity building in inclusive insurance

Background

Uninsured risk has devastating consequences to individuals and societies alike. Shocks – such as illness or death, the loss of productive assets, and the destruction brought by disasters – can, in a single stroke, wipe out a poor family’s assets and its capacity to earn a basic living, bankrupt small and medium enterprises and even cause major negative financial consequences to governments.

Insurance can make a tangible and crucial difference, and its benefits go beyond financial protection in the event of a shock. However, the insurance industry is not yet fulfilling its potential to support social and economic development. Many are the barriers that prevent this growth, including the shortage of skills in the insurance sector. While there is a growing knowledge about successful impact insurance operations, the dos and don’ts of designing and delivering valuable insurance products to underserved markets, these lessons have not been broadly disseminated.

Purpose

Through this project, the ILO’s Impact Insurance Facility and the Insurance and Risk Finance Facility of the United Nations Development Programme (UNDP) seek to improve the quality and quantity of impact insurance products by building the capacity of the insurance industry in selected countries.

The direct target groups of the project are:
  • The insurance industry in focus countries, including insurance institutes, who will build their capacity to offer inclusive insurance trainings, as well as insurance companies and distribution channels that are willing and committed to acquire knowledge through trainings, in order to begin serving new market segments or to improve their current offer;
  • UNDP country offices, who will participate in capacity building activities focused on insurance and its contribution to social and economic development and will acquire the necessary knowledge to integrate this tool in other UNDP projects.
The indirect beneficiaries of the project will be underserved consumers in focus countries, such as low-income households, small and medium enterprises, rural dwellers and women clients, who will have better access to quality insurance products and will, therefore, improve their risk management capacity.

Activities

  • Development of five training modules focused on inclusive insurance topics and targeting the insurance industry and distribution channels;
  • Development of one e-learning course on inclusive insurance and its contribution to development;
  • Capacity building of the insurance industry and of distribution channels in Tanzania and Indonesia through a series of inclusive insurance trainings;
  • Capacity building of insurance training institutes and local trainers in Tanzania and Indonesia through a series of trainings of trainers;
  • Capacity building of UNDP country offices to acquire the necessary knowledge to integrate insurance as an element in other UNDP projects.