Italian giant Generali has partnered with the United Nations Development Programme (UNDP) to help boost access to insurance and risk finance solutions in developing countries.
According to UNDP, the multi-year partnership will provide financial and technical resources to design digitally enabled parametric insurance solutions aimed at protecting vulnerable families and small businesses. Equally, the focus will also be on developing cost-effective large-scale risk finance solutions and promoting thought leadership on human development and social innovation.
“Insurance should not only be a remedy after natural disasters,” asserted Generali Group chief executive Philippe Donnet. “Rather, methodologies pioneered by the industry help us gather data and consequently assess potential risk.
“We therefore acquire a deeper understanding of how and when to reduce the impact of potential losses. We are eager to help shape UNDP’s ambitious agenda of protecting lives, building resilience, and driving inclusive economic growth.”
Under the tie-up, Donnet’s camp has committed technical and financial backing to UNDP’s Insurance and Risk Finance Facility.
Commenting on the alliance, UNDP administrator Achim Steiner said: “This new partnership with Generali will allow UNDP to extend much-needed insurance solutions to vulnerable families and businesses – from smallholder farmers suffering in the face of drought; defending natural capital at risk from climate change in coastal communities; or rolling-out financial protection for people displaced by conflict and instability.”
Steiner highlighted that the poorest countries in the world lose an average of US$29 billion every year from disasters, while only 3% of such losses are insured.
The collaboration will also be looking at the role of venture philanthropy in protecting lives and livelihoods.
“Financial protection, business development, and human rights all go hand in hand,” stated Donnet. “Private and public institutions must work together to better understand how insurance solutions can be accessible and affordable for the people who need them the most.
Insurance can contribute to socioeconomic stability and, in the event of natural catastrophes, can lead an effective and accelerated recovery.”