On International Women’s Day 2024, the United Nations Development Programme (UNDP) through its Insurance & Risk Finance Facility and the ICMIF Foundation have announced the four winning projects of the Insurance Innovation Challenge (IIC) Fund.

Launched on International Women’s Day in 2023, the Insurance Innovation Challenge (IIC) is a major public-private partnership which calls on mutual and cooperative insurers to innovate affordable and inclusive insurance products which have been tailored to underserved households and micro, small & medium enterprises (MSMEs) in developing economies, with a particular focus on increasing the resilience of women in low-income communities.

The IIC Fund will enable mutual or cooperative insurance initiatives to strengthen the financial resilience of people with low income. Mutual and cooperative insurers were invited to compete for technical and financial resources to develop and distribute innovative and affordable insurance products specifically serving the needs of most vulnerable households, with a particular focus on women, in developing economies. The UNDP ICMIF Insurance Innovation Challenge is made possible through UNDP contributions matched by ICMIF members.

The Fund received 26 applications which were reviewed by the independent IIC Selection Committee. The Committee chose the following four projects as the winners:

• India: National Insurance VimoSEWA Cooperative Ltd. will develop the ‘Saral Suraksha Yojana’ income loss insurance product to protect women working in the informal sector in from out-of-pocket expenses incurred during a health crisis or hospitalisation
• Kenya: The CIC Insurance Group product “CIC COOP Care Micro Health” will target 8,800 policies (inpatient, outpatient, maternity, dental, optical and end of life expense) from low-income households in cooperative societies, specifically women owned cooperatives.
• Malawi: The Co-operative Life Assurance Ltd ‘Abwenzi Rural Health Insurance Project’, will target 50,000 policy holders (covering maternity, hospitalisation, funeral and outpatient coverage), mostly women in rural areas and earning less than USD 3 per day.
• Sri Lanka: The Sanasa Life Insurance Public limited Company (SLIC) project aims to scale up insurance for women-run micro, small and medium enterprises (MSMEs) through an innovative insurance product called “Labandi Ran Wasi” designed specifically for women entrepreneurs in Sri Lanka.

With a target of 93,800 policies and over 375,000 individuals, these projects are rooted in the cooperative insurance approach, working directly with grassroots communities to co-create risk models and foster resilience, opening a path to financial protection for tens of millions of women in developing countries.

These projects will bring their solutions to life thanks to the support provided by UNDP and the ICMIF Foundation, with the support from ICMIF members Co-operators (Canada); Folksam (Sweden); OneFamily (UK); Portage Mutual Insurance (Canada); Pennsylvania Lumbermens Mutual Insurance Company (USA); PPS (South Africa) and Gruppo Unipol (Italy).

Speaking about the winning projects, Liz Green, CEO Designate, ICMIF said: “It is with great pride that we announce the four remarkable projects selected as winners in the UNDP ICMIF Insurance Innovation Challenge. This initiative, launched on International Women’s Day in 2023, not only demonstrates the power of partnerships but also highlights the pivotal role mutual and cooperative insurers play in fostering inclusive and affordable insurance solutions for underserved communities. By addressing the unique needs of women in low-income communities, these initiatives go beyond mere financial protection; they empower women and contribute to sustainable economic development.”

Liz Green continued: “We look forward to seeing the impact of the National Insurance VimoSEWA Cooperative Ltd in India, the CIC Insurance Group’s COOP Care Micro Health in Kenya, the Co-operative Life Assurance Ltd’s Abwenzi Rural Health Insurance Project in Malawi, and the Sanasa Life Insurance Public Limited Company’s project in Sri Lanka. These projects embody innovation and also showcase our collective dedication to building resilient communities and promoting gender equality.”

“The success of the UNDP ICMIF Insurance Innovation Challenge is a testament to the transformative power of cooperative and mutual insurance. We extend our gratitude to all participants, the Selection Committee, and our partners for their commitment to making a positive difference in the lives of millions. As we move forward, we encourage ICMIF members to join us in supporting the UNDP ICMIF Insurance Innovation Challenge, amplifying the impact of our cooperative efforts on a global scale,” concluded Liz Green.

Tuga Alaskary, Technical Specialist Risk Financing and Gender Lead, UNDP Insurance and Risk Finance Facility said: “Women’s financial resilience was a core criteria of the UNDP ICMIF Insurance Innovations Challenge and now a core feature of the four winning projects, because empowering women isn’t just a matter of equality – it’s an essential strategy for sustainable development.”

Inclusive insurance – specifically targeted at women – provides a valuable means of stability and potentially increased income for individuals and households, thereby contributing to sustainable economic development.

Women in low-income countries have traditionally been the ones who have had to cope with unexpected financial shocks, such as the loss of the family breadwinner. This might include having to sell possessions, taking children out of school so that they can earn money, or relying on neighbours and relatives for support. Without the protection that insurance cover brings, women often resort to diverting resources that might otherwise be invested in health, education or a new business.

Successful applicants will be awarded up to USD 100,000 over two years to support their project. Technical assistance is also available. Technical assistance received by projects will include south to south operational and strategy assistance, north to south training and south to north exchanges around innovation and know-how.

What is the objective of the IIC?

The overarching objective of the IIC is to boost the financial resilience of underserved communities in developing economies through cooperative and mutual insurers, given their closeness to social and community organisations, and contribute to the achievement of the UN Sustainable Development Goals (SDGs) notably:

• SDG 1 on No Poverty
• SDG 2 on Zero Hunger
• SDG 3 on Good Health & Well-being
• SDG 5 on Gender Equality
• SDG 8 on Decent Work and Economic Growth
• SDG 10 on Reduced Inequalities
• SDG 11 on Sustainable Cities and Communities

The immediate objective of the IIC is to scale up existing inclusive insurance programmes, particularly those with a focus on women, innovation, sustainability and which have demonstrable impact on underserved communities.

The IIC will also contribute towards the aspirations of the InsuResilience Global Partnership 2025 in particular the target of 150 million poor and vulnerable people covered by micro-level insurance.

The Insurance Innovation Challenge Fund brings together the inclusive insurance expertise and closeness to vulnerable communities of the ICMIF Foundation, which is currently serving three million households living on average with less than USD 5 per day, with UNDP’s long-term focus on building the financial resilience of communities and countries. Overseen by UNDP’s IRFF and administered by the ICMIF Foundation, the Challenge Fund will support a minimum of four organisations over 2 years to scale their existing microinsurance programmes to reach new customers and markets in developing countries, with plans to significantly scale up the work into the future.

The launch of the Fund and the signing ceremony took place at the sidelines of ICMIF Centenary Conference in Rome, Italy in October 2022.