Inclusive insurance is not a new concept but an evolving one. Its importance in meeting the sustainable development goals in emerging markets is undisputed. Inclusive insurance enables positive social outcomes by cushioning vulnerable populations from various risks and empowering them to become more entrepreneurial through risk-sharing. As a reinsurer focused on the protection needs of emerging Asia and the rising middle class, inclusion in insurance is a part of Peak Re’s business mission. Inclusive insurance is critical to development in emerging markets and is even more important today as the effects of the COVID-19 pandemic, social inequality and macro trends such as climate change threaten to leave vulnerable populations even further behind.

Inclusive insurance is evolving. The COVID-19 pandemic, for example, has increased the awareness of health and life protection in emerging markets in recent years, while the accelerating pace of digitalisation globally has improved financial access and inclusion. Moreover, financial innovations, such as social and impact bonds, are bringing risk capital to promising social interventions that support vulnerable segments of the community.

Several studies have alluded to the lasting contribution of inclusive insurance in economic development and poverty reduction. Insurance can help break the cycle of poverty by helping individuals and families overcome significant financial shocks, thereby reducing the reliance on costly debt or unpredictable external…