This year Nepal hosted The International Conference on Inclusive Insurance. It was held during 21-25 October 2024 at the historic Lal Durbar Convention Center at the Yak and Yeti Hotel in Kathmandu. The 20th anniversary year of the conference saw experts from 50+ countries gather to discuss and identify ways of accelerating growth and economic viability in inclusive insurance for emerging markets. Over 500 delegates attended the conference, which was hosted by the Nepal Insurance Association, Life Insurance Association Nepal, Nepal Microinsurance Association and the Nepal Insurance Authority in cooperation with Munich Re Foundation and the Microinsurance Network.
Here are the highlights of the key speeches at the conference.
Alluding to the recent catastrophic floods in Nepal, Matthew Genazzini, Executive Director of the Microinsurance Network, underscored the urgent need to better manage disaster risks, particularly in Asia, the world’s most disaster-prone region. In 2022 alone, over 80 disasters impacted 50 million people, according to the World Meteorological Organization. While insurance plays a crucial role in managing these risks, he urged exploring the holistic approaches that combine insurance with other mechanisms, such as savings, credit, and capacity-building services. He pointed out a study in Senegal which showed that clients valued risk education more than the insurance product itself, highlighting the potential for integrated solution to enhance resilience. He re-affirmed that The Microinsurance Network has played a considerable part in pushing the sector forward, promoting innovation and forging partnerships and links between organizations bound by a shared pursuit towards inclusion, aligning with its vision to work towards ‘a world where people of all income levels are more resilient to everyday risks.’
Lorenzo Chan, Chairman of the Board of the Microinsurance Network, said that in 2022 alone, Asia suffered $36 bn in economic damages, of which 83% these were flood and storm events. He pointed that the conference was timely to discuss various options to address these increasing threats to lives and livelihoods. He emphasized the need not for one single solution but rather several solutions with each doing its part and working together with the others for greater impact.
He looked forward to speakers sharing various alternatives and options available towards inclusion, building economic resilience and closing the protection gap. He emphasized that political will, collaboration, bold regulation and enforcement will enable innovative mindsets and more effective and efficient deployment of solutions.
The world faces many risks undermining socio-economic development and there can be no sustainable growth without economic resilience. But most importantly, while we may think it will cost us to take action, it will cost us even more if we don’t, he explained.
Dirk Reinhard, Vice Chair of the Munich Re Foundation, listed the key topics at ICII 2024 being pricing and actuarial capacity, data and digitization, insurance for MSMEs, gender equity, market development strategies, and climate risk management, with a quarter of sessions dedicated to climate-focused discussions. Nepal, being chosen as this year’s host country, highlights the urgent need to make insurance accessible to over 2 billion people across South Asia. He noted that this conference aims to builds strategies that protect vulnerable populations from life, health, and climate risks, especially in light of recent floods in Nepal and severe drought in southern Africa, underscoring the essential role of insurance in fostering resilience against climate threats.
Chunky Chhetry, President of Nepal Insurers’ Association averred that ICII 2024 continues its 2-decade legacy as a leading platform for advancing inclusive insurance. He listed focus areas for the conference: Climate Risk Insurance, Digital Innovations, and Overcoming Barriers to Scaling Inclusive Insurance. These key sessions address pressing topics like climate change and disaster risk finance, bridging the insurance gap, and the role of technology in expanding access to insurance in today’s evolving risk landscape. Field visits will offer a firsthand view of inclusive insurance initiatives, he added.
Surya Prasad Silwal, Chairman of Nepal Insurance Authority urged the unique gathering unites stakeholders from over 50 countries- including government, industry, development agencies, and academia – to advance inclusive insurance in emerging markets. It is a unique platform for sharing best practices, fostering partnerships, and exploring ways to expand insurance access for vulnerable populations.
He emphasized that the extreme September rainfall in Nepal that killed 236 people and caused billions in losses, highlights the need for inclusive insurance. This type of insurance isn’t just about risk management; it’s a lifeline for low-income, rural, and marginalised groups, providing essential resilience against financial hardship.
He emphasized the crucial importance of collaboration is crucial. Effective partnerships between government, industry, and the global community will ensure sustainable protection for those most at risk. With Nepal’s Insurance Act of 2022 and supportive fiscal policies, the nation is poised for transformative growth in inclusive insurance. He urged the conference participants to foster new initiatives and drive meaningful change through collective efforts.
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