Generali and UNDP partner to bridge protection gap and boost SME resilience

Insurer  Generali and the United Nations Development Programme (UNDP) have launched the “Insurance Innovation Challenge Fund” aiming to facilitate and incentivise the development of innovative insurance products and services in Malaysia.

Generali, together with UNDP, has expanded its flagship SME EnterPRIZE project to Asia, which has already been running in Europe over the past two years.

The partnership aims to boost resilience in small and medium-sized enterprises (SMEs) against climate change, and reduce the protection gap for vulnerable communities through access to insurance and risk finance solutions.

The “Insurance Innovation Challenge Fund” will provide $100,000 for the first year to support the development of insurance solutions, including financial and technical support.

These initiatives are part of a broader commitment to raise awareness, as well set the path for insurance to unlock security for SMEs in developing countries, Generali said.

The SME resilience activities carried out by UNDP and Generali in Asia are being developed with the primary focus of the Malaysian market in respect to the loss prevention framework and the Insurance Innovation Challenge Fund.

Jaime Anchústegui Melgarejo, CEO International of Generali, said: “SMEs are the bedrock of the Asian economy, yet despite their contribution to socio-economic growth development, they remain highly vulnerable to risks. Insurance provides the safeguard that businesses need to flourish in the face of those risks, boosting economic development and prosperity. This innovative partnership with UNDP is seeing Generali utilise its expertise from across the world, and locally in Asia, to help boost an insurance culture which will be essential for the region’s future success.”

The coming months will see UNDP and Generali issue the first parametric insurance framework for alignment criteria to the overall SDG Agenda, which will be followed by a Generali commitment on the parametric solutions supporting the UN’s Sustainable Development Goals.

The two organisations will also work to boost research and advocacy with important stakeholders, with dedicated moments including the European launch of the Human Development Report in early 2024. There will also be an exchange of development tools and expertise across the two organisations.

Jan Kellett, team leader, UNDP's Insurance and Risk Finance Facility, said: “As the hazards and shocks driven by our changing climate become increasingly frequent, the role of insurance to protect low-income communities has never been more critical. With the Insurance Innovation Challenge Fund in Malaysia, UNDP and Generali are venturing into new territories of insurance products and markets, harnessing the power of innovation to build the financial resilience of the small and medium business community, the bedrock of employment and economic growth. In leveraging the significant expertise and experience of the insurance industry, exemplified by Generali, this public-private partnership has the potential to foster economic development, resilience, and prosperity in regions like Asia.”

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