Insurance for low-income populations, or microinsurance, is now firmly accepted as an integral tool for poverty alleviation and building resilience in communities against natural and man-made disasters.
Recent global initiatives recognising the importance of risk management for disaster relief include the UN Sendai Agreement on Disaster Risk and Resilience, the G7 Climate Risk Insurance Initiative ‘InsuResilience’ and the Climate Change Summit, COP21.
Mutual microinsurance can specifically assist with at least five of the United Nations 2020 Sustainable Development Goals (SDGs) namely Goals One, Two, Three, Five and 13:
GOAL 1 NO POVERTY: Will help people escape the vicious cycle of poverty and provide a safety net to vulnerable communities.
GOAL 2: ZERO HUNGER: Will help to ensure food security through the delivery of insurance protection to smallholder farmers, amongst others.
GOAL 3: GOOD HEALTH AND WELL-BEING: In addition to increasing access to health insurance, will focus on health prevention and access to quality healthcare.
GOAL 5 GENDER EQUALITY: Will positively impact on women who are most often the policyholders of a mutual microinsurance provider.
- GOAL 13 CLIMATE ACTION: The target communities of the 5-5-5 Strategy are the most vulnerable to climate change.