Role of Community- Based Organizations in Promoting Inclusive Insurance

Insurance remains one of the most underutilized financial tools among low-income and marginalized populations, despite its critical role in providing financial protection and risk management.

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Traditional insurance models, often centralized and complex, have failed to penetrate the informal sectors and remote communities effectively.

Introduction

Insurance remains one of the most underutilized financial tools among low-income and marginalized populations, despite its critical role in providing financial protection and risk management. Traditional insurance models, often centralized and complex, have failed to penetrate the informal sectors and remote communities effectively. This gap has led to the rise of community-based organizations (CBOs) playing a vital role in promoting inclusive insurance. These organizations act as facilitators, educators, and enablers in delivering affordable, accessible, and tailored insurance solutions that meet the unique needs of underserved populations.

Understanding Inclusive Insurance

Inclusive insurance refers to insurance products and services designed specifically to meet the needs of low-income individuals, informal workers, and vulnerable groups. The core principles of inclusive insurance are affordability, accessibility, transparency, and suitability. It is often delivered through innovative channels and models, including microinsurance and community-based schemes, to reach the last mile.

Community-Based Organizations: Bridging the Gap

CBOs are grassroots-level institutions that are deeply embedded in local communities. They include self-help groups, cooperatives, NGOs, credit unions, faith-based groups, and other membership-based entities. Their proximity to the target population makes them ideal conduits for disseminating information, building trust, and delivering services in a manner that traditional insurers often cannot achieve.

Key Roles of CBOs in Promoting Inclusive Insurance

1. Awareness and Education