From the Desk of the Secretary General – June 2025

By Jonathan Dixon

Inclusive finance, and particularly inclusive insurance, plays a transformative role in building societal resilience. In a world increasingly shaped by uncertainty and rapidly evolving risks – ranging from geopolitical tensions and macroeconomic vulnerabilities to climate change, digital innovation and cyber threats – the importance of addressing insurance protection gaps cannot be overstated.

At its heart, insurance exists to mitigate financial shocks that can derail lives and livelihoods. Inclusive insurance extends this promise to the unserved and underserved, including low-income populations, informal workers, smallholder farmers and other vulnerable groups. For these communities, insurance is not merely a safety net; it is a lifeline. It offers financial protection, enabling individuals to recover from shocks, plan for the future and build confidence in their financial decisions.

Beyond individual benefits, inclusive insurance drives broader societal outcomes. It helps reduce poverty, supports social and economic development, and advances public policy objectives by providing coverage against economic losses. Recognising this, the IAIS has made the societal role of insurance a central pillar of its new five-year Strategic Plan.

As supervisors, our focus on inclusive insurance is evolving. We are moving from a concept of “access” to one of “financial health.” This shift underscores that meaningful outcomes for consumers go beyond simply having a policy. It is about ensuring that insurance solutions genuinely meet the needs of consumers, particularly those who are most vulnerable. Our forthcoming updated “Application Paper on inclusive insurance” reflects this perspective, emphasising that inclusive insurance must support financial health by addressing daily financial needs, enabling recovery from shocks and fostering long-term financial resilience.

Innovation is key to achieving these goals. Solutions such as microinsurance, product bundling and parametric insurance are increasingly critical, such as in addressing the growing frequency and severity of natural catastrophes (NatCat). However, tackling protection gaps requires coordinated action from all stakeholders.

Some examples of how the IAIS is pursuing a partnership model to build inclusive insurance markets and tackling protection gaps include:

• Enhanced cooperation arrangements amongst standard-setting bodies and development organisations to advance financial inclusion and support financial health – in particular through the enhanced engagement platform chaired by the Bank for International Settlements and the Office of the United Nations Secretary General’s Special Advocate for Financial Health (USGSA), Her Majesty Queen Máxima of the Netherlands.

• Working with policymakers in the G7 and the G20 to advance multi-party solutions to addressing NatCat protection gaps. Notably, this year, under the South African G20 Presidency, the IAIS has developed a paper, together with the World Bank, providing possible actions that can be taken to address these protection gaps. It underscores the critical role of insurance in managing the physical risk and financial impacts of NatCat events, supporting recovery efforts, and promoting resilience. As a next step, we will develop a practical resource, together with the World Bank and other partners, that can assist supervisors and policymakers in addressing NatCat protection gaps.

• Lastly, public-private partnerships, like the Global Shield Against Climate Risks and Insurance Development Forum highlight the power of collaboration in scaling solutions. Similarly, partnerships with organisations like CGAP, the Access to Insurance Initiative (A2ii) and development institutions are vital for driving innovation and capacity building.

On that note, this month marks a significant milestone. We are pleased to announce that CGAP will become the new host and convenor of the A2ii, effective 1 July 2025, and the IAIS has become a member of CGAP. As our key implementation partner on financial inclusion, the A2ii has played a pivotal role in advancing inclusive insurance. From its early days as a start-up project to its current status as a cornerstone of the insurance ecosystem, the A2ii has been instrumental in fostering inclusive insurance markets worldwide.

The transition to CGAP represents an exciting next chapter. With its strong strategic alignment and complementary expertise, CGAP will amplify the A2ii’s impact. Together with the IAIS’ convening power and CGAP’s research and guidance, we will advance inclusive insurance and foster broader financial sector development. This collaboration will enable us to address key challenges, such as building resilience to health and climate crises, while testing innovative approaches and sharing knowledge of what works.

Our collective efforts will ensure that inclusive insurance continues to empower those who need it most, enabling societies to navigate uncertainty and build a more resilient world.