Page 30 - The Insurance Times April 2025

Role of Community

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

Introduction Community-Based Organizations: Bridg-
Insurance remains one of the most underutilized financial ing the Gap
tools among low-income and marginalized populations, de- CBOs are grassroots-level institutions that are deeply em-
spite its critical role in providing financial protection and risk bedded in local communities. They include self-help groups,
management. Traditional insurance models, often central-
cooperatives, NGOs, credit unions, faith-based groups, and
ized and complex, have failed to penetrate the informal
other membership-based entities. Their proximity to the
sectors and remote communities effectively. This gap has
target population makes them ideal conduits for disseminat-
led to the rise of community-based organizations (CBOs) ing information, building trust, and delivering services in a
playing a vital role in promoting inclusive insurance. These
manner that traditional insurers often cannot achieve.
organizations act as facilitators, educators, and enablers in
delivering affordable, accessible, and tailored insurance
solutions that meet the unique needs of underserved Key Roles of CBOs in Promoting Inclusive Insur-
populations. ance
1. Awareness and Education
Understanding Inclusive Insurance One of the most significant barriers to insurance adop-
Inclusive insurance refers to insurance products and services tion is the lack of awareness and understanding of how
designed specifically to meet the needs of low-income indi- insurance works. CBOs are instrumental in educating
viduals, informal workers, and vulnerable groups. The core communities about the importance of risk protection
principles of inclusive insurance are affordability, accessibil- and the mechanisms of insurance. Through workshops,
ity, transparency, and suitability. It is often delivered through community meetings, and peer-to-peer engagement,
innovative channels and models, including microinsurance they demystify insurance concepts, explain policy ben-
and community-based schemes, to reach the last mile. efits, and correct misconceptions.

28 April 2025 The Insurance Times