UNDP is currently partnering with the German-based insurance company, Allianz and GTZ, the German international cooperation agency, to carry out market studies to analyse the demand for micro-insurance products in India, Indonesia and Lao PDR. It is hoped that the delivery of micro-insurance products will benefit poor and low income groups, reduce their vulnerabilities, establish local entrepreneurs and strengthen livelihoods.
It is also hoped that access to micro-insurance will encourage private sector investments including infrastructure, increase resilience in communities at the bottom of the pyramid and promote sustainable human development.
A consumer base of more than half of the world’s population presents significant market potential for the insurance industry. Allianz, as one of the leading provider of insurance services, will bring its global experience to determine viable insurance products and the cost of providing them.
The studies conducted by the partnership clearly indicate that access to microinsurance helps the poor. Findings are that microinsurance contributes significantly to achieving the Millennium Development Goals, particularly eradicating extreme poverty, promoting gender equality and developing a global partnership for development.