The United Nations Development Program (UNDP) and the International Cooperative and Mutual Insurance Federation (ICMIF) Foundation have launched the Insurance Innovation Fund to build financial resilience for low-income populations in countries in development.
According to the announcement, the Fund will enable mutual insurance initiatives to build the financial resilience of low-income people. It was originally funded with $600,000.
Mutual and cooperative insurers will have to compete for technical and financial resources to develop and distribute innovative and affordable insurance products that specifically meet the needs of the most vulnerable households.
The Insurance Innovation Challenge Fund will support a minimum of four organizations over two to three years to expand their existing microinsurance programs to reach new customers and markets in developing countries, with plans to significantly scale up work at the future.
It will be overseen by the UNDP Risk Financing and Insurance Facility and administered by the ICMIF Foundation.
Rob Wesseling, President and CEO of The Co-operators (Canada) and Chairman of the ICMIF Foundation, said: “ICMIF welcomes this new joint initiative with UNDP to support the poorest communities. world and build resilience to climate, health and other shocks.
“Mutual and cooperative insurers work with grassroots communities to co-create risk models and develop education programs that support risk mitigation and adaptation. This partnership will help expand access to affordable insurance for those who need it most, building on the ICMIF Foundation’s 5-5-5 mutual microinsurance strategy, which has reached 15 million people over the past five years.
ICMIF noted that the Fund combines the inclusive insurance expertise and proximity to vulnerable communities of the ICMIF Foundation – currently serving an average of three million households living on less than $5 a day – with UNDP’s long-term focus on building the financial resilience of communities and countries.
