Driving the adoption of climate and disaster risk insurance products across the globe is a persistent challenge for international development agencies. Due to its size, location, and numerous countries with low socio-demographic indicators, and complex financial markets, Asia poses the greatest challenge. Climate change has already exacerbated the number and scale of disaster events in Asia. Hence, stakeholders need to understand the current landscape of CDRI products and work toward scaling up its adoption.

Against this background, MSC undertook an analysis of the status of climate and disaster risk insurance (CDRI) across 22 countries in South and Southeast Asia. We collaborated with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the Regulatory Framework Promotion of Pro-Poor Insurance Markets in Asia (RFPI-Asia). MSC undertook robust secondary research on the existing policy and regulatory environments around CDRI and existing CDRI solutions at the macro, meso, and micro levels. The findings were further complemented with key informant interviews across Bangladesh, Indonesia, the Philippines, and Vietnam.

Barefoot College commissioned MSC to support its Solar Sakhis—women champions of solar energy products. Our support involved the development of an HR strategy, lending products and methodology, scoring tools, digital repayment solutions, technology integration, and training. MSC conducted field research and thereafter developed a solar business vertical and designed youth-focused product concepts and processes. At the time of writing, we were working on a credit-scoring tool, repayment solutions, and capacity-building of young Solar Sakhis.

MSC supported YouthSave through its Market Insights for Innovation and Design (MI4ID) approach, which incorporates principles of behavioral economics and human-centered design. This included research, data analysis, product strategy development, and the development of the product prototype. Based on the product prototype, the Bank of Kathmandu (BoK) launched the “BoK Chetanshil Yuwa Bachat Yojana” (BoK savings plan for conscientious youth) across the bank’s 43 branches in April, 2012. By the start of 2013, it had already created 5,207 youth accounts successfully.

MSC conducted a research study to understand the demand for financial products among youth in central Java. The aim was to capture youth perception of existing products, compare their financial needs with current products of Plan International, and suggest suitable financial products for youth. Our research formed the basis for a youth savings product for young women, which was pilot tested with one of the largest cooperatives in Indonesia. The insights from the pilot were used to design and customize its larger economic empowerment initiative for youth in Indonesia.

Equity Bank intended to increase youth interest and access to savings products in Kenya. MSC worked with Equity Bank to conduct a market research study to understand the financial needs of clients and developed a set of financial products for the potential youth clientele. Since the launch of these products, the bank expanded its youth customer base from 13% (end of 2012) to 47% (end of 2019). Over five years, 83% of youth continued with the bank, 27% used additional products, and the loan sizes borrowed by youth quadrupled from USD 250 to USD 860.

UNCDF engaged MSC to understand the effects of financial and non-financial services that financial service providers offer to youth under the Youth Start program. MSC helped develop, pilot test, and roll out youth-focused financial products. Ten FSPs participated in a training and follow-up support program delivered by MSC, which helped them develop targeted products for youth—particularly young women and girls. Of the total program beneficiaries, 86% declared having improved financial capabilities and 90% claimed an improved ability to save.