From October 21–25, 2024, over 500 global experts convened in Kathmandu, Nepal, for the International Conference on Inclusive Insurance (ICII). The event united stakeholders from 43 countries to explore pathways for accelerating the growth and viability of inclusive insurance in emerging markets. With discussions ranging from climate risk and gender-focused strategies to digital innovation and microinsurance trends, the ICII offered a vital platform to advance the agenda of inclusive insurance as a tool for economic resilience and empowerment.

Inclusive Insurance: A Catalyst for Sustainable Development

A recurring theme at the ICII 2024 was the need to mainstream insurance as a foundational tool for financial resilience. As Chunky Chhetry, President of the Nepal Insurers' Association, summarized, "Inclusive insurance is not just a financial product, it is a tool for empowerment and resilience." This vision underscores the need for stakeholders across the public and private sectors to unite in expanding coverage, particularly in underserved communities.

Experts at ICII 2024 discussed strategies to address the insurance gap in low-income markets, highlighting five key success factors for microinsurance companies: partnerships, distribution channels, standalone units, skilled teams, and digitalization. Strategic partnerships, such as the collaboration between Chartered Life Insurance in Bangladesh, BRAC, and UNDP, leverage established networks to build trust and expand outreach. Microinsurance providers often adopt B2B2C models, working through intermediaries like microfinance institutions and fintech platforms for cost-effective expansion. Standalone units with dedicated leadership help tailor products to low-income customers, while skilled teams enhance service and product management. Digitalization has streamlined claim processing, reducing times and increasing customer satisfaction.

However, increasing insurance outreach faces several challenges, including limited awareness and education, infrastructure and accessibility concerns, economic and affordability challenges, risk management and pricing complexity, gaps in government support and data, demographic and healthcare disparities, as well as the prevalence of informal insurance activities and limited actuarial capacity.

Driving Gender-Focused Insurance Innovation

Gender inclusivity was a significant highlight of the ICII 2024. From plenary sessions to specialized panels, discussions emphasized the private sector’s role in closing the gender protection gap. Fatou Giwa, IFC's Global Lead for the Women's Insurance Program, participated in a plenary session titled “Women, Insurance, Risk Management, and the Path to Financial Empowerment,” where she discussed comprehensive approaches to enhancing women's access to and uptake of insurance. Fatou highlighted IFC’s commitment to advancing women’s financial protection through tailored solutions, innovative products, inclusive distribution models, and gender sensitivity training. She emphasized the importance of increasing women’s participation in the insurance industry as employees and distribution agents, while noting the private sector's essential role in bridging the gender protection gap.

Prapti Sherchan, Operations Officer, Gender and Economic Inclusion Department, IFC, India, highlighted the business case for engaging women as insurance agents, noting their ability to build trust and improve access for underserved female customers in developing economies. Collaborative efforts like the IFC-ILO Community of Practice continue to drive progress in making insurance more inclusive and impactful for women globally. 

Building Resilience: Innovation in Parametric Insurance for Climate Risk

The ICII 2024 highlighted the pressing challenge of climate risks, especially in light of the devastating rainfall that struck the Kathmandu region shortly before the event. Parametric insurance emerged as a promising tool, though it faces challenges such as basis risk, which arises from technology failures, data insufficiencies, and inadequate product design. Addressing these issues requires combining multiple data sources, developing robust index models, and integrating insurance with other risk management tools. Industry collaboration and iterative improvement are essential. A holistic approach, including savings and improved agricultural practices, was proposed to enhance community resilience.

Insights from the Microinsurance Landscape Report

The launch of the 2024 Microinsurance Network’s Landscape of Microinsurance Report offered valuable insights into global trends. Notably, microinsurance now covers 344 million people globally, with life and agriculture insurance leading the market. However, significant gaps remain, with only 10% of the target market in Asia having access to affordable risk management tools. The report emphasized the need for patient investment, strategic partnerships, and digital innovation to scale inclusive insurance effectively.

Pathways Forward

As Nepal continues to advance its inclusive insurance agenda, initiatives such as microinsurance regulations and government-subsidized agricultural insurance schemes are paving the way for broader coverage. The establishment of mobile insurance channels and the adoption of digital policy guidelines signal a commitment to leveraging innovation for accessibility. Surya Prasad Silwal, Chairman of the Nepal Insurance Authority, emphasizes the transformative power of inclusive insurance in enhancing lives and fostering future resilience. He states, "Inclusive insurance is not merely about managing risk; it is about offering hope and certainty to the most vulnerable."

As the global community progresses, the lessons from ICII 2024 will inspire ongoing collaboration and innovation to close protection gaps and ensure financial security for all. Replicating successful models that demonstrate financial sustainability, focusing on women, and designing tailored products are key strategies. Integrating insurance with other financial products, such as savings and credit, is crucial. Public-private partnerships, involving governments, development partners, and insurers, are essential for scaling inclusive insurance and bridging outreach and sustainability gaps.