Zurich Financial Services Group announced today that its Z Zurich Foundation (Foundation) will support the International Labour Organization (ILO)’s Microinsurance Innovation Facility with a contribution of CHF 3 million to facilitate the development of innovative approaches to provide better insurance coverage to more low-income people in a cost effective way.
Reducing the administrative costs to the lowest possible level helps unlock the value of risk protection to the low-income population. Therefore, one of the major focus areas of microinsurance services is on streamlining and/or eliminating scale and efficiency challenges, specifically: a) the enrolment and premium collection from persons in remote areas and /or who may not have bank accounts, b) the management of large numbers of small policies and small claims, and c) the integration of multiple actors who work together to provide the insurance service.
Martin Senn, Zurich’s Chief Executive Officer and Chairman of the Foundation’s Board said: “We believe it’s critical to our long-term business success to play our part in delivering sustainable, long-lasting solutions to important and relevant economic, social and environmental challenges. In these difficult times of market recovery, it is important to underpin our commitment to corporate responsibility and actively support the development of better insurance services for the less fortunate”.
To support the development of innovative approaches to provide better insurance coverage to more low income people in a cost effective way the Facility will provide innovation grants to organizations involved in microinsurance. The grant applications will be reviewed using the Facility’s existing selection process and the best 5 to 7 projects selected will be closely monitored over a 3 to 4-year period. Results and learnings will be widely disseminated to assure the broadest possible usage of the gained insights.
