As the Insurance Development Forum (IDF) marks its 10th anniversary, we spoke with Hiroshi Matano, IDF Steering Committee Co-Chair and Executive Vice President of the Multilateral Investment Guarantee Agency (MIGA), World Bank Group. He shared his perspective on how the IDF has helped to embed insurance in sustainable development finance, and why the next decade holds even greater promise for collaboration between governments, development finance institutions, and the insurance industry to build future-ready nations.
Looking back over the past decade, what impact has the IDF had on development finance?
Hiroshi Matano: Over the past 10 years, the IDF has done a great job bringing the knowledge and expertise of the insurance industry into the development conversation. At the World Bank Group, a central theme for us is how to mobilise private sector involvement for the betterment of the countries we serve. Insurance has often been a missing piece in that dialogue, undervalued, to be frank, but through the IDF we’ve demonstrated the increasingly important role it can play.
Why do you believe insurance is such a critical but undervalued part of sustainable development?
Hiroshi Matano: When you think about the extreme weather events we see across the globe, there needs to be a solution. The insurance industry has a huge pool of capital and the ability to deploy it into building infrastructure, schools, hospitals, things that matter to communities. The question is how we can create the right frameworks for the private sector to invest. That’s why this dialogue, which started 10 years ago, is so important to continue.
What areas of insurance innovation are you most excited about for emerging markets?
Hiroshi Matano: I see two sides – the investment side and the underwriting side. On the investment side, I’m very excited about the IDF Resilient Infrastructure Fund we are creating; it can be a powerful vehicle to bring financing into emerging markets, particularly in Africa. On the underwriting side, there are so many unique products, like parametric insurance and crop finance insurance, that can provide real solutions in emerging markets. The opportunity is in bridging these innovative products into development contexts where they can have the greatest impact.
You also mentioned the importance of risk modelling. Why is this so significant?
Hiroshi Matano: For me, the intellectual curiosity around risk modelling has been eye-opening. I come from Japan, where earthquakes are part of our national story, and insurance plays a big role in providing support when disasters strike. The risk models underpinning that are essential. If we can bring that same modelling capacity to other risks, extreme weather, climate change, it will be a huge benefit to the world. The capability of the insurance industry to create and refine these models is truly an achievement.
As the IDF looks to its next decade, what is your call to action?
Hiroshi Matano: The dream is to embed the insurance industry more deeply into development. When we talk about projects, there are global banks, asset managers, developers, but insurance is too important to leave out. Through the IDF, we’ve built good intentions and strong dialogue between public and private sides. The challenge now is how to construct solutions together. If we can achieve that, the next 10 years will see even greater impact in bridging the resilience financing gap.
Watch the video interview below.
