Generali and UNDP launch initiatives against climate risks
Generali and UNDP launch initiatives against climate risks | Insurance Business Asia
SME
Generali and UNDP launch initiatives against climate risks
Initiatives aim to benefit SMEs
Generali and the UN Development Programme (UNDP) have spearheaded an initiative by gathering key figures from Malaysia’s Ministry of Finance, Bank Negara Malaysia, the SME Association of Malaysia, along with experts from the insurance and financial sectors.
This event aims to address the challenges small and medium-sized enterprises (SMEs) face due to climate change and other risks.
This initiative is an extension of the ongoing collaboration between Generali and UNDP’s Insurance and Risk Finance Facility (IRFF), which seeks to narrow the insurance coverage gap for at-risk communities globally by offering accessible insurance options.
Generali’s SME initiative
Generali is broadening the reach of its SME EnterPRIZE initiative in Asia. This program, which has already made significant strides in engaging SMEs across Europe to embrace sustainable practices, aims to instil a culture of sustainability within the SME sector.
A pivotal outcome of the collaboration is the release of a research study titled “Building MSME Resilience in Southeast Asia,” focusing on key sectors in Thailand and Malaysia.
The study underscores the critical role of MSMEs as the backbone of Southeast Asia’s economy, facing serious threats from environmental changes, operational disruptions, and limited access to financial markets. These challenges are compounded by insufficient risk management, lack of adequate coping strategies, and minimal insurance penetration, with under 5% of Southeast Asia’s MSMEs covered by insurance.
Calls for a targeted approach to bolster MSME resilience
The study advocates a targeted approach to bolster MSME resilience, starting with a thorough analysis of their specific risk profiles and addressing their distinct needs.
It suggests focusing on essential industries such as agriculture, hospitality, retail, and manufacturing, aiming to fortify these enterprises through comprehensive strategies that integrate risk transfer with preventive measures. This includes innovative insurance products tailored to MSMEs, supported by technological advancements and digital platforms to ensure broader accessibility.
Digital tool to bolster SMEs’ climate resilience
Generali and UNDP introduced the SME Loss Prevention Framework, a digital tool designed to enhance SMEs’ understanding of and preparedness for risks, initially focusing on flood risks in Malaysia.
This framework, which is being developed into a user-friendly online platform and mobile app, uses data analytics to offer practical advice to SMEs on mitigating climate-related and other risks, aiding in the sustainability of this vital economic segment in developing nations.
Innovative insurance solutions in Malaysia
The session also highlighted progress in the “Insurance Innovation Challenge Fund,” established to promote the creation of innovative insurance solutions in Malaysia. This initiative showcased four cutting-edge insurance solutions aimed at improving SME resilience to climate and various risks.
In the near future, finalists will be selected, with two winners receiving significant financial support and expert guidance to bring their innovative ideas to fruition, leveraging Generali and UNDP’s extensive global network.
Leaders from Generali and UNDP emphasised the indispensable role of SMEs and MSMEs in the economic landscape of Malaysia, Thailand, and the wider Asian region. They stressed the crucial function of insurance in fortifying these businesses against the escalating challenges posed by climate change and other external pressures.
“The MSME community in Malaysia, Thailand, and the broader Asia region are an indispensable part of the growth and development stories of these markets. However, they face very real and intensifying risks from climate change and other factors that are affecting business continuity and their ability to capture emerging opportunities,” said Jaime Anchústegui Melgarejo, CEO International of Generali. “Insurance is at the heart of the solution for making SMEs and MSMEs more resilient and is the driving force behind Generali’s partnership with UNDP.
“Bringing SME EnterPRIZE to Asia, launching our SME Loss Prevention Framework, and progressing our Insurance Innovation Challenge Fund are key milestones in our effort to support vulnerable businesses in Asia. I’m eager to continue our collaboration with UNDP and find new ways to make a lasting impact.”
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!
