Over the past decade, remarkable progress has been made in improving financial inclusion in terms of the number of adults using formal financial services, the adoption and usage of digital platforms and massive investments by the private sector. However, despite such positive development, the insurance sector is lagging with take-up at just 15% of the adult population in 2017.
It is clear that new thinking is required to catalyse the insurance industry to play its part in the financial inclusion agenda. This focus note presents the Bima Challenge, a landmark project promoting innovative new solutions that aim to build inclusive microinsurance by addressing risk-related challenges which low-income customers are facing. The Financial Sector Deepening Trust (FSDT) is delighted with the achievements it has enabled and is keen to share the learning gained from this pioneering initiative to help inform widespread development of the microinsurance industry.