Micro, small and medium-sized enterprises (MSMEs) are at the heart of India’s economy, employing around 62% of the country’s labor force and contributing to more than 30% of GDP. India’s MSMEs create jobs, livelihoods and economic opportunities across the country, yet many remain highly exposed to financial, operational and climate-related shocks – from supply-chain disruptions and price fluctuations to workplace accidents and floods.
Insurance can play an important role in strengthening this resilience, helping businesses absorb shocks, continue operating and recover faster. Yet only 15% of MSMEs report having adequate insurance coverage. Limited awareness, high perceived costs and limited products and distribution models that do not always reflect the realities of smaller businesses continue to constrain uptake.
To help close this protection gap, UNDP and Generali are launching an MSME-focused Insurance Innovation Challenge in India, calling for the scale up of insurance products and services that are accessible, affordable and relevant for MSMEs and their workers.
Applications will close on November 20, 2026 and up to three winning solutions will be announced in February 2027 with an award of up to US$40,000 to support the development or scaling of each solution.
Key focus areas and priorities of the insurance innovation challenge
The Challenge is looking for existing solutions with demonstrated traction that can strengthen MSME resilience to risks including health, disability, life, business interruption, asset loss and liability.
Innovation can include not only insurance products, but also digital platforms, processes, partnerships, distribution models and other approaches across the insurance value chain.
Priority areas include:
Affordable and accessible insurance for MSMEs and their employees;
Technology-enabled solutions, including AI and digital platforms;
Embedded or bundled insurance linked to services such as credit, remittances or digital tools;
New distribution channels capable of reaching MSMEs at scale;
Solutions for gig workers and other underserved segments;
Approaches that strengthen financial literacy and trust in insurance;
Solutions that advance the resilience and participation of young entrepreneurs and women in the MSME ecosystem.
Applicants can draw on UNDP and Generali’s Building MSME Resilience in South and Southeast Asia report as a practical resource to inform the development of scalable and sustainable solutions.
