Marcos Neto, UN Assistant Secretary-General and Director, UNDP
The global protection gap (the difference between financial losses and what is covered by insurance) leaves 9 out of 10 people in developing countries without insurance coverage when shocks such as drought, flood, illness or crop loss strike
Geneva: 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, today announced early results of the world’s largest inclusive insurance innovation programme, projected to benefit 2.7 million people across 30 countries.
Launched in 2023, this programme is developing a pipeline of more than 40 inclusive insurance products and services aimed at protecting low-income households, small businesses, farmers and vulnerable communities from financial risks–critical to increasing financial protection in developing countries.
Eleven solutions are already on the market and have reached more than 250,000 beneficiaries. They range from an index-based insurance product for rice farmers in Viet Nam, to flexible health insurance for motorcycle delivery drivers in Tanzania, to the world’s first jaguar-protection insurance in Argentina.
An additional 25 solutions currently in development include an AI-embedded livestock insurance product for cow and buffalo producers in Nepal, a parametric scheme to protect Colombia’s wetlands against wildfires, and accident insurance for women entrepreneurs in Ecuador, accompanied by guarantor-free loans and advisory support to strengthen businesses’ sustainably.
The programme represents a collaborative undertaking by over 100 public and private sector partners working together at local, national and global levels.
Catalyzed by US$2.9 million in seed financing from the founding partners–UNDP, BMZ, Generali and the ICMIF Foundation–the initiative addresses a critical challenge: closing the vast global protection gap, which reached a record $1.8 trillion in 2023.
The global protection gap (the difference between financial losses and what is covered by insurance) leaves 9 out of 10 people in developing countries without insurance coverage when shocks such as drought, flood, illness or crop loss strike.
Marcos Neto, UN Assistant Secretary-General and Director of UNDP’s Bureau for Policy and Programme Support, said: “The insurance innovation programme is driving a new generation of affordable, accessible solutions that empower women to build resilience and plan for the future, and strengthen the ability of whole households, smallholder farmers and small businesses to make bold decisions, even in times of uncertainty.”
Katharina Stasch, Director-General of Multilateral Development Policy,“ Transformation; Climate at the German Federal Ministry for Economic Cooperation and Development (BMZ), said: “People on the frontlines of climate change and economic uncertainty need meaningful pathways to build their resilience and recover from shocks. Germany is proud to partner with UNDP on this bold insurance innovation agenda, which contributes to the Global Shield for Climate Risks, and is strengthening the financial protection and resilience of vulnerable countries around the world.”
Lucia Silva, Chief Sustainability Officer, Generali, said: “MSMEs are a key part of the growth and development of the global economy, yet they are highly vulnerable to risks from climate change, geopolitical tensions and market disruptions. As a global player focused on retail and SME clients, our partnership with UNDP recognizes these growing risks and our joint insurance innovation challenges are designed to support MSMEs’ access to the solutions they need to become more resilient and more sustainable.”
Insurance at COP30 Belem
As the world prepares for critical climate negotiations at COP30 in Belém next week, the climate crisis is intensifying risks across health, food production, micro and small business resilience, biodiversity loss and gender equality. With climate disasters on track to cost $145 billion in 2025, COP30 negotiations are expected to see a greater focus on how insurance can enable investment in climate resilience and adaptation.
Scaling Inclusive Insurance for the SDGs
To sustain and scale these inclusive insurance solutions, UNDP and partners are working with governments and the insurance industry to promote financial literacy, enhance policy and regulatory environments, and strengthen local market capacity.
UNDP also provides technical assistance, ranging from impact measurement to strategic planning, to help local insurance and insurance-technology (‘insurtech’) startups mobilize finance to scale or replicate solutions aligned with the Sustainable Development Goals (SDGs).
These efforts are closely aligned with the Compromiso de Sevilla, endorsed by 192 countries in July 2025 as a blueprint to close the US$4.3 trillion SDG financing gap and expand access to financial protection worldwide.
Sabbir Patel, Chief Executive Officer, ICMIF Foundation, said: “Mutual and cooperative insurers have long worked hand in hand with communities to create a safer, more resilient world. Together with UNDP, we are scaling that cooperative model to reach women and low-income households around the world, demonstrating that inclusive insurance can be designed from the ground up to deliver real, lasting impact.”