The United Nations Development Programme (UNDP) and Generali Central, representing the Generali Group's general and life insurance businesses in India, have launched an Insurance Innovation Challenge to identify and scale solutions that strengthen the resilience of India's micro, small and medium-sized enterprises (MSMEs).
A joint media release by the two organisations said India’s more than 73m MSMEs contribute about 30% of the country’s GDP and 44% of its exports, while employing 60% of its workforce. Yet climate shocks, supply-chain disruption, workplace risks and unexpected personal shocks affecting owners and workers are placing these businesses under growing strain.
Insurance can help MSMEs absorb such shocks, ensure that they keep operating and can recover faster. However, coverage remains limited because of low awareness, perceived costs and products that do not always reflect MSMEs’ needs. The UNDP–Generali Insurance Innovation Challenge aims to help close this protection gap by identifying and scaling more accessible, relevant solutions.
The Challenge is seeking proven insurance products and distribution models that address key risks facing MSMEs, including health-related events, business interruption and asset loss. It is open to insurance providers, InsurTechs, technology service providers, social enterprises, and insurance sales and distribution companies legally registered in India. Priority will go to solutions that use technology to improve access and affordability, bundle insurance with financial services, develop new ways to reach MSMEs or strengthen financial literacy.
UNDP India Resident Representative Angela Lusigi said, “India has shown time and again that innovation can turn big challenges into solutions at scale. For millions of small businesses, a climate shock, health emergency or other disruption can put jobs and livelihoods at risk. This Challenge will help identify insurance solutions that respond to these real risks and can reach more MSMEs. Stronger MSMEs mean more secure livelihoods, more resilient communities and an economy better prepared for future shocks.”
Generali Central Insurance MD and CEO K G Krishnamoorthy Rao said, “Strengthening MSMEs’ ability to withstand disruption is critical to India’s sustainable economic growth. Insurance has an important role to play, but solutions must be relevant and accessible to the businesses they aim to protect. Through our partnership with UNDP, we want to bring together insurance expertise, technology and innovation to support solutions that address the real risks facing India’s MSMEs and create models with the potential to scale.”
Generali Central Life Insurance MD and CEO Alok Rungta said, “MSMEs are the backbone of India’s economy, yet many remain vulnerable to financial shocks arising from health events, the loss of a key income earner or business disruption. Through this initiative with UNDP, we hope to encourage innovative approaches that expand protection for MSMEs and their workforce, while supporting long-term financial security and sustainable business growth.”
Up to three winning solutions will each receive grants of up to $40,000 to support development or scaling. Applications close on 20 November 2026, and the organisers expect to announce the winners in February 2027.
Recent UNDP-Generali research also highlights how relationships among MSMEs, buyers, suppliers, financial institutions, insurers and other value-chain actors to develop more tailored and scalable risk solutions for MSMEs. Applicants are encouraged to use this research when developing solutions with a credible pathway to scale.