Insurance Must Play a Stronger Role in Advancing Sustainable Development

Swiss Re recently supported a groundbreaking position paper entitled "Insurance and Sustainable Development: Partnering on Risk, Resilience, and Transformation."  Authored by Lorcán Hall and Patrick Paul Walsh from the UN Sustainable Development Solutions Network (SDSN), this research-backed paper compellingly argues that the insurance industry can be a catalyst for global transformational progress. At the heart of the paper is a call for strong public-private partnerships that leverage innovation, risk management and risk transfer solutions to deliver societal impact and commercial value. The publication of this paper is well-timed to communicate the value of insurance at the upcoming 4th International Conference on Financing for Sustainable Development (FFD4). The event, taking place in early July 2025, will set the parameters for development financing for the next decade.

The insurance industry is essential in managing risk and increasing resilience for households, businesses, and governments globally. However, a significant protection gap remains. Swiss Re estimates that over 40% of global risks were unprotected or uninsured in areas such as crop, natural catastrophe, health, and mortality perils.

If the insurance industry and sustainable development organizations collaborated to shrink this protection gap, the results could be substantial. With tailored insurance, communities recover sooner from natural catastrophes, farmers recover faster from climate shocks - promoting crop resilience and greater food security. Insurance helps families gain access to affordable healthcare, which supports greater health resilience.  And expanded access to life insurance protection increases household resilience in the event of the loss of a breadwinner. 

The SDSN paper examines the reasons why the insurance industry's strengths are often undervalued in United Nations multilateral development agreements. It also explores potential collaborations between the public and private sectors to use insurance to protect the millions of individuals who currently lack sufficient risk coverage. 

Drawing from 42 in-depth research interviews with global leaders from the public and private sector, the paper outlines 11 design principles that chart a path for mobilizing and scaling the use of insurance for sustainable development. These principles are then linked to 18 actionable recommendations that public and private sector organizations can take to make sustainability an innovation and growth opportunity. 

A few of the recommendations aimed at the private sector and the insurance industry in particular include:

• Articulating the societal value of insurance using language, data, and evidence that is meaningful to non-insurance audiences.
• Making insurance inclusive and applying the Leave No One Behind principle by intentionally designing products, services, and processes that are locally appropriate and meet the needs of underserved communities.
• Deciding who will represent the industry at development fora and resource this organisation appropriately so that the industry has a “seat at the table” when agendas and frameworks are being drafted.
• Using the 17 SDGs and their 169 targets to inform and guide innovation and partnership efforts across the four dimensions of sustainable development.

 If you are interested in engaging in partnerships that drive sustainable development and growth opportunities, please reach out to Melissa Leitner or Shelly Habecker for further discussion.