The impact of inclusive insurance: A systematic review of the literature (2013 to 2024)

Financial inclusion professionals work on the premise that insurance can be one of the tools to build financial resilience and support social and economic development. This is done through the pooling of risk, relieving the insured from the full burden of a financial shock. For low-income households and small businesses, financial shocks could mean poverty, over indebtedness and even child labour.

The key question addressed in this paper is, does inclusive insurance really help and, if so, how? The paper presents the results of a literature review, analysing academic papers between 2013 and 2024 that contain statistical evidence of social and/or economic impact(s) of inclusive insurance. Key findings are that inclusive insurance can:

• Shape agricultural production by ensuring input access, fostering innovation, and driving economic growth, thereby boosting productivity and sustainability.
• Impact health and well-being, both directly and indirectly.
• Impact a household’s financial coping mechanisms.
• Improve financial resilience and support poverty reduction.
• Contribute to several SDGs.