UNDP, Generali Central Launch Challenge To Boost Insurance For Indian MSMEs

New Delhi, Oct 7 (KNN) The United Nations Development Programme (UNDP) and Generali Central on Wednesday launched an Insurance Innovation Challenge to identify and scale solutions aimed at strengthening the resilience of India's micro, small and medium enterprises (MSMEs).

India has more than 73 million MSMEs, which account for around 30 per cent of GDP and 44 per cent of exports while employing about 60 per cent of the workforce, according to SIDBI's 2025 data.

However, climate-related shocks, supply-chain disruptions, workplace risks and personal emergencies affecting business owners and workers continue to expose MSMEs to financial vulnerabilities.

The organisers said insurance can help businesses absorb such shocks and recover faster, but coverage remains limited due to low awareness, perceived costs and products that may not adequately address MSME-specific needs.

Challenge Seeks Scalable Insurance Solutions

The challenge is seeking proven insurance products and distribution models addressing risks such as health emergencies, business interruption and asset losses.

It is open to insurance providers, insurtech firms, technology service providers, social enterprises and insurance sales and distribution companies legally registered in India.

Priority will be given to solutions that use technology to improve access and affordability, combine insurance with financial services, develop new distribution channels for MSMEs or strengthen financial literacy.

Angela Lusigi, Resident Representative, UNDP India, said the initiative would help identify insurance solutions that address the risks faced by small businesses and can be scaled to reach more MSMEs.

K G Krishnamoorthy Rao, MD and CEO, Generali Central Insurance, said insurance solutions need to be relevant and accessible to MSMEs, while Alok Rungta, MD and CEO, Generali Central Life Insurance, highlighted the need for simple solutions to address financial shocks arising from health events, loss of key income earners and business disruption.

Winners To Receive Grants

Up to three winning solutions will receive grants of up to USD 40,000 each to support their development or scaling.

Applications will close on November 20, 2026, with winners expected to be announced in February 2027.

The challenge forms part of the broader UNDP-Generali partnership on MSME resilience in India and Asia, covering risk-reduction tools, capacity building, training, insurance innovation and engagement with government and industry.

(KNN Bureau)