Inclusive insurance and risk finance diagnostics in India

• Jul 26, 2025
• 1 min

India faces escalating climate- and disaster-related risks, yet vulnerable communities remain largely uninsured and financially exposed. Despite the presence of various public and private initiatives, risk-transfer mechanisms are fragmented, access to affordable insurance is limited, and coordination between policy frameworks, service providers, and community needs remains weak. These gaps undermine resilience and hinder the country’s ability to integrate inclusive insurance into broader development and climate strategies. The country needed a systematic and coordinated diagnosis to inform national priorities and unlock targeted investments through the Integrated National Financing Framework (INFF).

MSC led a comprehensive diagnostic study on inclusive insurance and risk finance in India. We assessed the enabling environment, identified market gaps, and recommended practical pathways for the integration of insurance into the INFF. This involved understanding community needs, supply-side constraints, and the role of insurance in mitigating climate and disaster risks.

MSC conducted wide-ranging stakeholder consultations with government agencies, which included the Ministry of Agriculture and the National Disaster Management Authority, insurance companies, and regulators. The team analyzed supply-demand dynamics, legislative frameworks, distribution mechanisms, and risk-transfer instruments across sectors.

The final report served as a foundational document to guide the UNDP’s future technical assistance programs under its Insurance and Risk Finance Facility (IRFF). It shaped national priorities and deepened the integration of insurance into India’s development agenda.

The United Nations Development Programme (UNDP) commissioned the project.