The power of technology to close the micro-insurance Protection Gap
The latest IDF report demonstrates the power of innovation and technology in closing the protection gap at micro-level
Launch of White Paper ‘Technology and Innovation: Tools to help close the Protection Gap in Micro-Insurance Markets’ explores how technology can be used to deliver insurance solutions, particularly in developing countries
The Insurance Development Forum (IDF) is calling on the insurance sector and its stakeholders to harness the latest technological advances in data collection to help close the protection gap at the micro-level.
The call for action coincides with the publication of the IDF’s latest report, Technology and Innovation: Tools to help close the Protection Gap in Microinsurance Markets. Published today, the paper highlights how technology can be used to develop and deliver insurance solutions to address the unique issues faced by populations in the lower and emerging middle-classes of the economic spectrum.
Led by the IDF’s working group on Law, Regulation and Resilience Policies (LRRP), and developed in collaboration with global law firm Clyde & Co, the whitepaper explores the latest advancements in data processing, analytics and artificial intelligence. Using multiple case studies and expert analysis, the authors demonstrate how the insurance industry and others can use such technology as powerful tools – not only to close the protection gap that exists in connection with microinsurance markets, but to address the risks accelerated by climate change.
From using satellite data for parametric insurance models in agriculture, to improving disaster warning communications, and even connecting with unbanked consumers through mobile platforms, the paper draws on insights from around the world to demonstrate how technology can extend the reach of insurers and help build more resilient communities – particularly in developing countries.
In light of these technological developments, the report also includes a review of current laws and regulations, and how these could be adapted to ensure they are fit for purpose. Technology and Innovation: Tools to help close the Protection Gap in Microinsurance Markets, draws from the insights of a cross disciplinary and global team of contributors, including leading lawyers and academics on insurance law and smart contracts, senior members of the insurance industry, senior personnel at multilateral development banks, development practitioners and policymakers, alongside leading thinkers and practitioners in artificial intelligence and satellite technology applications.
This is the second in-depth exploration on how technology can be leveraged to improve resilience. It follows on from the IDF paper How Technology Can Help Bridge the Protection Gap, published in 2019, which focused solely on the use of technology in connection with sovereign and sub-sovereign risks.