Global Insurance Innovation Programme Expands Protection for 2.7 Million People

The initiative was catalyzed by US$2.9 million in seed funding from its founding partners and represents one of the largest public-private collaborations in the insurance industry.

A groundbreaking international initiative led by the United Nations Development Programme (UNDP), the German Federal Ministry for Economic Cooperation and Development (BMZ), Generali Group, and the International Cooperative and Mutual Insurance Federation (ICMIF) Foundation is showing promising early results in closing the world’s vast financial protection gap. The Inclusive Insurance Innovation Programme, launched in 2023, is on track to benefit 2.7 million people across 30 countries, providing affordable and accessible insurance products to low-income households, small businesses, farmers, and vulnerable communities.

Addressing a $1.8 Trillion Global Protection Gap

The initiative was catalyzed by US$2.9 million in seed funding from its founding partners and represents one of the largest public-private collaborations in the insurance industry. It brings together over 100 partners at local, national, and global levels, combining technical expertise, capital, and innovation to develop more than 40 inclusive insurance products and services.

The programme tackles a critical issue: the global protection gap, which reached a record US$1.8 trillion in 2023. This gap represents the difference between the total financial losses people experience and what is covered by insurance. In developing countries, this means that nine out of ten people remain uninsured against risks like droughts, floods, illness, or crop failure—leaving millions vulnerable to poverty traps after shocks.

Early Successes: From Farmers to Entrepreneurs

In just one year, 11 inclusive insurance solutions have already launched, reaching more than 250,000 beneficiaries. These solutions are tailored to address the diverse risks faced by marginalized communities around the world:

• In Viet Nam, a new index-based insurance for rice farmers compensates growers when yields fall below climate thresholds, helping stabilize rural livelihoods.

• In Tanzania, motorcycle delivery drivers—often excluded from traditional insurance—can now access flexible health coverage designed around their variable income cycles.

• In Argentina, the world’s first jaguar-protection insurance is helping conserve biodiversity by compensating farmers for livestock losses linked to wildlife, reducing human-wildlife conflict.

These innovative products exemplify how insurance can serve both social and environmental objectives, supporting sustainable livelihoods while protecting ecosystems.

Expanding the Pipeline: 25 More Solutions in Development

A further 25 products are under development, covering a diverse range of needs and regions. Highlights include:

• AI-embedded livestock insurance for cattle and buffalo producers in Nepal, providing real-time risk assessment and automated claims.

• A parametric insurance scheme in Colombia designed to protect wetlands from wildfires by linking payouts to satellite data on environmental damage.

• Accident insurance for women entrepreneurs in Ecuador, bundled with guarantor-free loans and business advisory services to promote financial inclusion and resilience.

These products reflect the programme’s commitment to innovation and local adaptation, using technology, data, and behavioral insights to design solutions that work for the people most at risk.

Voices from Global Partners

Marcos Neto, UN Assistant Secretary-General and Director of UNDP’s Bureau for Policy and Programme Support, emphasized the transformative nature of the initiative:

“This programme is driving a new generation of affordable, accessible solutions that empower women, strengthen smallholder farmers, and give communities the confidence to plan for the future.”

Dr. Katharina Stasch, Director-General for Multilateral Development Policy, Transformation, and Climate at BMZ, added:

“People on the frontlines of climate change and economic uncertainty need meaningful pathways to build resilience and recover from shocks. This initiative supports the Global Shield for Climate Risks, helping vulnerable nations strengthen their financial protection.”

From the private sector, Lucia Silva, Chief Sustainability Officer at Generali, highlighted the programme’s importance for micro, small, and medium enterprises (MSMEs):

“MSMEs are vital to global growth but remain highly vulnerable to climate and market risks. Our partnership with UNDP aims to expand access to insurance tools that help them become more resilient and sustainable.”

Insurance and Climate Resilience at COP30

The announcement comes ahead of COP30 in Belém, where discussions will center on financing and resilience amid escalating climate threats. With climate-related disasters projected to cost US$145 billion in 2025, insurance is increasingly being recognized as a critical mechanism for climate adaptation, allowing countries to recover faster from shocks while incentivizing risk reduction.

UNDP and its partners are expected to showcase how inclusive insurance can help achieve both climate and development goals, particularly in low-income and climate-vulnerable nations.

Building Financial Literacy and Policy Support

Beyond product innovation, the programme invests in financial literacy, regulatory reform, and capacity-building to sustain and scale inclusive insurance markets. Through technical assistance and impact measurement, UNDP supports local insurers and “insurtech” startups to mobilize private finance, ensuring that inclusive insurance becomes a viable and sustainable industry segment.

These efforts align closely with the Compromiso de Sevilla, endorsed by 192 countries in July 2025, which provides a roadmap to close the US$4.3 trillion SDG financing gap and expand financial protection worldwide.

Cooperative Models for Long-Term Resilience

Sabbir Patel, CEO of the ICMIF Foundation, highlighted the power of cooperative insurance in creating lasting community impact:

“Mutual and cooperative insurers have always worked hand in hand with communities to build safer, more resilient societies. Through this partnership, we are scaling that model globally to reach women, farmers, and low-income households with real, transformative insurance solutions.”

Toward a More Protected Future

As global risks intensify—from climate shocks to economic volatility—the Inclusive Insurance Innovation Programme stands as a beacon of partnership-driven resilience. By linking innovation, financial inclusion, and climate action, it demonstrates how insurance can evolve into a powerful instrument for sustainable development and social protection.