Posted on 28 Jan 2010
Zurich Financial Services Group (Zurich) 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 enrollment 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.
“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”, said Martin Senn, Zurich’s Chief Executive Officer and Chairman of the Foundation’s Board.
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.
Focus on interlinked challenges
The Z Zurich Foundation’s mission is to equip people with the knowledge and resources to better manage change and risk in their lives and in the world around them. On a strategic level it develops long-term partnerships with selected Non-Profit Organizations. The Foundation’s focus is on the interlinked challenges of climate change, water scarcity, food security and economic development, combining Zurich’s global experience and risk management capabilities with the Non-Profit Organizations’ local knowledge and sustainable development expertise. Current partners are UK-based Practical Action, US-based Rainforest Alliance, and the Swiss-based International Federation of Red Cross and Red Crescent Societies (IFRC).