ROME, SEPTEMBER 25 – The United Nations Development Programme (UNDP), together with Generali, one of the largest global insurers and asset managers, has announced the Innovative Insurance Challenge Fund (IICF) for Malaysia, a joint initiative that seeks to identify and bolster innovative insurance solutions aimed at amplifying the resilience of Small and Medium-sized Enterprises (SMEs).
Focusing on the communities vulnerable to climate risks, the IICF encourages the cultivation of solutions that scale and customize existing insurance products to enhance SMEs resilience, a sector employing 7.3 million people in Malaysia. Successful entrants will receive up to US$40,000 for each solution, along with technical support and guidance during the development phase.
The announcement was made at a high-level meeting in Rome, bringing together representatives of the EU Commission - Directorate General for International Partnerships, the Malaysian Embassy to Italy, and the Operating Committee for the G7 Italian Presidency.
SMEs are the backbone of Malaysia’s economy, accounting for 97.2% of total business establishments. At the same time, SMEs face growing risks in ASEAN, particularly from natural disasters, with southeast Asia being the most disaster-prone region in the world. Those risks are exacerbated by a low insurance penetration rate, as more than 90% of small businesses don’t have access to insurance.
The IICF seeks solutions that are tailored to meet the multifaceted challenges faced by SMEs while introducing new business models and technologies, protecting businesses from risks, enabling their stability and growth while breaking new ground in the realm of insurance. The challenge incentivizes the expansion of SMEs' digitalization, when 92% of businesses report having adopted digital payment, and 39% have digitalized their production in 2022.
The initiative is part of a broader commitment of Generali and UNDP to set the path for insurance to unlock security for SMEs in developing countries. Additionally, Generali and UNDP are developing a disaster loss prevention framework for SMEs to leverage the power of data, awareness, and understanding of risks for businesses in vulnerable communities. Furthermore, the partnership will focus on developing an Asian edition of Generali’s flagship SME EnterPRIZE project, designed to promote a culture of sustainability among SMEs, which has been successfully running in Europe over the past two years.
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Media Contacts:
Dany Oliveira, Communications Specialist, UNDP Insurance and Risk Finance Facility dany.oliveira@undp.org
Jonathan Heywood, Responsible for International Media Relations, Generali
Jonathan.Heywood@generali.com
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About UNDP:
UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and planet.
About UNDP’s Insurance and Risk Finance Facility:
UNDP’s the Insurance and Risk Finance Facility (IRFF), is a flagship initiative housed within the organization’s Sustainable Finance Hub. It is currently working in more than 20 countries and will move to 50 countries by 2025. All of the IRFF work is aligned to the goals of the InsuResilience Vision 2025 which aims to cover 500 million people with insurance solutions in developing countries in the next three years.
About the Generali Group:
Generali is one of the largest global insurance and asset management providers. Established in 1831, it is present in over 50 countries in the world, with a total premium income of € 81.5 billion in 2022. With 82,000 employees serving 68 million customers, the Group has a leading position in Europe and a growing presence in Asia and Latin America. At the heart of Generali’s strategy is its Lifetime Partner commitment to customers, achieved through innovative and personalised solutions, best-in-class customer experience and its digitalised global distribution capabilities. The Group has fully embedded sustainability into all strategic choices, with the aim to create value for all stakeholders while building a fairer and more resilient society.
