On Thursday, United Nations Development Programme (UNDP) in Maldives and Maldives Monetary Authority (MMA) jointly conducted a validation session for an insurance sector diagnostic study in the country. The aim of the study is to facilitate a comprehensive gap analysis of the Maldivian insurance market and in doing so, determine futuristic areas of wider support in developing insurance solutions in the nation. The technical support for this study is being provided by UNDP’s international Insurance Risk Finance Facility (IRFF).
The findings of the study will help to pinpoint how insurance products can be mainstreamed across key industries in the Maldives such as tourism, agriculture and fisheries. Moreover, the findings will identify foundational steps required to implement innovative risk transfer solutions to conserve the natural bio reserves of the nation and the livelihoods that are reliant on them.
Additionally, the study will assist in providing recommendations on further developing the national insurance market through consolidating legal and administrative frameworks and building better capacity. The validation session was attended by prominent government ministries, banks, financial institutions as well as NGOS and tourism and private sector partners.
On the margins of the validation session, UNDP and MMA also re-ascertained their commitment to develop the insurance sector by signing a Statement of Intent between the organizations. The Intent was signed on behalf of UNDP by Resident Representative Enrico Gaveglia while Governor of MMA, Ali Hashim signed from the authority. The Intent will see the exploration of collaborative opportunities following the recommendations of the study.
Speaking at the signing event, UNDP Maldives Resident Representative, Enrico Gaveglia said, “Less than 5% of losses due to disasters covered by insurance in the Maldives, as compared to a 50% in high-income countries. Meaning that when disaster strikes, people lose their homes, jobs, food sources and face increased expenditure in healthcare. There is no compensation and no chance to rebuild their lives. Closing this ‘protection gap’ would help ensure that hard won progress is truly-sustainable in the long run.”
With the signing, UNDP will be expanding its support to MMA by providing access to extensive global and regional expertise in establishing data-driven, innovative research capabilities. The two organizations will jointly partner to develop similar capacities while seeking additional partnerships that will strengthen knowledge exchange.