ClydeCo-Resilience-Inclusive Insurance Report




Building resilience to natural and man- made perils is at the heart of why insurance exists and one of the reasons we launched a campaign earlier this year to help further that purpose and explore ways to help close the protection gap. Our paper earlier this year looked at the part parametric (or index) insurance plays in building resilience. It focused on the ability of parametric insurance to provide cover to whole communities and regions, often in association with governments or NGOs. Natural disasters are only one of many risks that people face and parametric insurance can only ever be one part of the insurance mix. In this paper we look broadly at the challenge of providing insurance cover to those in developing and emerging markets who are under or uninsured against a range of both extreme and everyday misfortunes. With insurance cover, ill health, unemployment, flood, fire or theft are unfortunate and distressing, but can be recovered from. Without insurance, or other risk mitigation strategies, these perils can deeply and profoundly impact people’s lives and reduce their ability to bounce back. What’s more, where insurance penetration is low, long term economic growth, development and social cohesion can be impacted. In this paper we explore the circumstances under which insurance could successfully penetrate uninsured markets and help to bridge the global protection gap; offering

so called ‘inclusive insurance’ to a much wider audience. In a digitally connected global economy we are rapidly expanding beyond a traditional “microinsurance” silo in emerging markets. The signs are positive for a rapid uptick in insurance penetration in emerging economies due to a combination of factors including: a global shift from low to middle incomes, technological developments driving incremental costs down and governments increasingly recognising the benefits of protecting their emergent middle classes. In putting this report together we spoke to leaders in this rapidly changing area and to colleagues across Clyde & Co’s global network to understand the landscape and the challenges as well as the regulatory and legal environments. We are most grateful for the time and insights offered by Paula Pagniez of Willis Towers Watson , Garance Wattez-Richard and Quentin Gisserot of AXA’s Emerging Customers , Sarah Schneider-Olié of Allianz SE , Fiona Stewart and Peter Wrede of the World Bank , Hannah Grant of the A2ii , and Ana Gonzalez Pelaez of the Cambridge Institute for Sustainability Leadership . Many thanks also to the UK’s Department for International Development , Cenfri and the InsuResilience Global Partnership for assisting in our research. If you would like to hear more about our global resilience campaign then please go to for more information.

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