ICII 2022

The Consortium of Excellence for the 17 Goals (C-17): University of Lausanne (Switzerland), University of Liverpool (United Kingdom), and York University (Canada) has the pleasure to host the following session:

Parallel Session 12 – Inclusive Insurance: When Academia Meets Practice

The goal of this session is to show how the quantitative tools scholars across Risk Management and Insurance (RMI)-related disciplines rely upon can help promote the development and implementation of individually and socially impactful inclusive insurance products and services. Realizing the full potential of science-driven results requires a practice-informed approach and thus close collaboration among academics, practitioners, policymakers, and other stakeholders. To stimulate discussions on bridging the gap between academia and practice, the session includes four presentations.

In the first presentation, we assess the benefits of coordination and partnerships between governments and private insurers and provide further evidence for inclusive insurance products as powerful and cost-effective tools for achieving poverty reduction. Our results are based on a rigorous mathematical framework that analytically proves the benefits of such partnerships.

In the second presentation, we discuss some new insurance paradigms, namely, parametric insurance and risk pooling, and how they can help developing countries’ governments tackle the aftermath of extreme events, via new partnerships and insurance coverage, as opposed to post-event financial aid/charity. As a contextual example, we focus on floods or droughts in African countries.

In the third presentation, we examine empirically whether microinsurance leaves a lasting impact on the aggregate economy using a sample of African countries. Results suggest a nuanced relationship, with the long-term effect of microinsurance on economic growth exceeding the short-term one and the poorest countries benefiting the most from microinsurance.

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