Micro, small, and medium enterprises (MSMEs) in the Philippines operate in one of the world’s most disaster-prone regions, yet most remain uninsured and financially vulnerable to climate shocks. Frequent typhoons and natural disasters disrupt business operations and often lead to prolonged recovery times or permanent closures. Traditional insurance products are either too costly or poorly aligned with the unique risks and cash flow patterns of MSMEs, which results in low uptake. The absence of affordable, accessible, and tailored risk protection leaves a critical gap in the country’s efforts to build enterprise resilience.
MSC was engaged to address the insurance gap for MSMEs by designing products that could protect them from disaster-related business disruptions.
MSC conducted detailed research with more than 180 MSMEs and facilitated dialogues with insurers and financial institutions to understand demand-side realities and supply-side readiness. Based on this, MSC developed a business interruption insurance concept tailored to the operational risks MSMEs face. MSC designed the product for affordability, with premium rates as low as PHP 900 per year (USD 18.56) for coverage up to USD 8578.25.
We promoted the product aggressively through Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and Department of Trade and Industry (DTI) the Philippines, with a target of 15,000 MSMEs, which included 2,000 MSMEs from Davao City alone. This intervention significantly boosted risk protection for MSMEs and encouraged enterprise resilience and sustainability amid climate volatility.
GIZ, the Department of Trade and Industry, and the Government of the Philippines commissioned the project.
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.
Ethiopia’s insurance sector faces critical capacity gaps that hinder its ability to grow and deliver inclusive financial protection. Without a coordinated approach to capability development, the sector remains ill-equipped to respond to emerging risks and market demands. Therefore, the sector needed a comprehensive and targeted capacity-building intervention.
MSC conducted a training needs assessment for Ethiopia’s insurance sector to support the establishment of a national center of excellence. The objective was to strengthen the skills and capabilities of insurance value chain players through the identification of the existing knowledge and capacity gaps that limit the sector’s growth and professionalism. These players included regulators, insurers, reinsurers, brokers, and training institutions.
MSC refined the IFC’s diagnostic tools, conducted primary and secondary research, and engaged 17 key institutions across the country. The assessment revealed major gaps in claims handling, underwriting, product innovation, and customer experience management. Further, MSC’s findings served as a foundation for the development of a tailored curriculum and informed the structure and focus of the upcoming center of excellence. This initiative was expected to enhance Ethiopia’s insurance sector’s long-term sustainability and performance by aligning capacity-building efforts with market needs.
The International Finance Corporation (IFC) and the Capital Financial Excellence Center (CaFEC) commissioned this project.
Smallholder farmers across Africa are increasingly becoming more vulnerable to climate-related shocks that threaten their livelihoods and food security. While weather-based index insurance offers a promising solution to help farmers manage weather-induced losses, adoption remains critically low. Many farmers do not fully understand how these products work, which leads to confusion and mistrust, especially during the claim process. Poor customer experiences, limited awareness, and ineffective communication further suppress demand. At the same time, insurance providers struggle to offer compelling value propositions and reach rural clients effectively, which leaves a significant protection gap in farming communities.
To address these challenges and unlock the potential of index insurance, MSC partnered with ACRE Africa to identify and tackle behavioral and structural barriers. We conducted a multicountry diagnosis with the use of a behavioral research to uncover customer pain points and institutional constraints. Based on these insights, we redesigned the customer journey, refined product features, and developed tailored training modules for field agents. We also introduced a village-based product champion model and supported digital outreach strategies to strengthen last-mile engagement.
These improvements contributed to the successful scale-up of weather-based index insurance, which reached approximately 200,000 farmers across ACRE Africa’s network. The initiative helped restore trust in insurance, improve access to climate risk protection, and build resilience among smallholder farmers across the region.
ACRE Africa commissioned this project.
Gig workers in Kenya lacked the formal protections offered in traditional employment. This exposed them to significant risks, such as income loss, workplace injuries, and medical emergencies.
To address this gap, the Mastercard Foundation’s Youth Livelihoods in Digital Financial Services (YLDFS) program supported a pilot initiative to design and test inclusive insurance solutions for gig workers in Kenya. The project sought to provide meaningful risk protection and enhance financial resilience for informal workers through innovative, user-centric insurance products.
MSC partnered with Lynk, a digital gig platform, and Britam Kenya to cocreate and pilot a personal accident and work injury insurance product tailored to gig workers’ needs. MSC conducted behavioral research to understand gig workers’ risk perceptions and financial behavior, then used those insights to guide product design. We also facilitated strategic partnerships, supported the pilot rollout, and developed digital financial education modules to promote product uptake and build trust.
The pilot insured more than 1,000 gig workers daily, which marked a major step forward in the expansion of financial safety nets for informal workers. The initiative showed the viability of gig worker insurance and laid the foundation for broader adoption of inclusive insurance solutions for Kenya’s growing digital workforce.
The Mastercard Foundation (YLDFS program) commissioned the project.
Smallholder farmers in Tanzania face increasing threats from climate variability and agricultural risks, yet remain largely excluded from formal risk-transfer mechanisms. With limited access to insurance, many rely on informal coping strategies that offer little protection in times of crisis. Although interest in agricultural microinsurance is growing, uptake remains low due to poor awareness, affordability challenges, and weak delivery infrastructure. These persistent barriers continue to undermine the financial resilience of rural farming communities and highlight the urgent need to explore scalable, inclusive insurance models tailored to their needs.
MSC explored the potential of microinsurance to support Tanzania’s smallholder farmers, particularly as a tool to manage climate and agricultural risks. We conducted a detailed feasibility assessment, which started with a review of existing insurance products and the policy landscape, followed by primary research with farmers, insurers, and agricultural stakeholders. The study evaluated insurance needs, affordability levels, awareness, and delivery barriers. MSC proposed customer-aligned product concepts that accounted for behavioral factors and local risk patterns.
The research also identified opportunities for viable, scalable microinsurance models. It laid the groundwork to pilot climate-smart insurance products and build a stronger business case for insurers to serve rural markets. This would enable AGRA to align its programs with practical, evidence-based risk mitigation solutions. A workshop was held in Dar es Salaam with relevant stakeholders for comments and validation of the findings. A final report and recommendations were delivered to guide the development and deployment of an appropriate and affordable micro-insurance product.
AGRA funded the project.
