Global insurer Generali has entered into a multi-year partnership with the United Nations Development Programme (UNDP) designed to provide emerging countries with better access to insurance and risk finance solutions.
Under the agreement, Generali has committed technical and financial resources to the UNDP’s Insurance and Risk Finance Facility.
By bringing together Generali’s insurance expertise with UNDP’s long-term focus on financing and development, the plan is to increase the socioeconomic wellbeing of some of the world’s most vulnerable people and regions.
Together, Generali and the UNDP will provide financial and technical resources to design digitally enabled parametric insurance solutions to protect the most vulnerable; develop large-scale risk finance solutions with a focus on cost-effectiveness; and promote thought leadership on both human development and social innovation.
UNDP Administrator, Achim Steiner, commented: “On average, the world’s poorest countries lose $29 billion every year from disasters yet a meagre 3% of these losses are covered by insurance.
“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.”
Philippe Donnet, Generali Group CEO, said: “Financial protection, business development and human rights all go hand in hand. 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.
“Insurance should not only be a remedy after natural disasters. 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.”
The partnership also sees Generali’s social philanthropy movement, The Human Safety Net, explore the role of venture philanthropy in protecting lives and livelihoods, notably those of children and refugees. It’s expected that both Generali and the UNDP will encourage innovative social entrepreneurship projects in the space of insurance and risk finance.
“The facts are irrefutable. Insurance protects lives, drives growth, and builds resilient economies while accelerating progress across the Global Goals. And innovative networks like the Human Safety Net are unlocking the potential of people living in vulnerable circumstances – so that they themselves can transform their lives – as well as their families and communities,” said Daniel Stander, Senior Advisor, UNDP.
“The partnership with Generali provides the technical and financial resources to design innovative, insurance-related solutions that accelerate the delivery of the Sustainable Development Goals. Generali’s multiyear contribution will help UNDP deepen efforts to explore with industry new parametric instruments that attract risk capital, strengthen SMEs, increase climate and financial resilience, reduce vulnerability, and deliver value for money in the context of sustainable development.” he added.