The United Nations Development Programme (UNDP) and Generali Central have launched the Insurance Innovation Challenge to identify and scale innovative insurance solutions that can strengthen the resilience of India’s micro, small and medium-sized enterprises (MSMEs). India has more than 73 million MSMEs, contributing around 30% of GDP and 44% of exports while employing 60% of the workforce, according to the figures cited by UNDP from SIDBI’s 2025 data. However, climate shocks, supply-chain disruptions, workplace risks, health emergencies and other unexpected events continue to expose MSMEs to significant financial vulnerability.
The challenge is seeking proven insurance products and distribution models addressing risks such as health-related events, business interruption and asset loss. It is open to insurance providers, InsurTech companies, 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 accessibility and affordability, bundle insurance with financial services, create new distribution channels for MSMEs or strengthen financial literacy. Up to three winning solutions will each receive grants of up to US$40,000, while applications will remain open until 20 November 2026, with winners expected to be announced in February 2027.
The initiative forms part of the wider UNDP–Generali partnership, established in 2022 to strengthen the financial resilience of vulnerable communities, MSMEs and global value chains against climate and other risks. The partnership combines research, risk-reduction tools, capacity building, insurance innovation and engagement with government and industry. For India’s MSMEs, the challenge highlights the need to move beyond traditional insurance products towards simple, relevant and scalable risk-transfer solutions that can help businesses absorb shocks, maintain operations and protect livelihoods.
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