UNDP and Generali Central offer grants for insurance that protects India's small businesses
A new UNDP and Generali Central challenge will give up to three insurance solutions grants of up to $40,000 each to help protect India's more than 73 million small businesses from climate, health and financial shocks.
The United Nations Development Programme and insurer Generali Central have launched a challenge to find and scale insurance that helps India's more than 73 million micro, small and medium-sized enterprises survive shocks, UNDP India announced on 7 October. Up to three winners will each receive grants of up to US$40,000.
Small firms carry much of India's economy, often without cover
India's small businesses produce about 30% of GDP and 44% of exports and employ 60% of the workforce, UNDP said, citing the Small Industries Development Bank of India. Climate shocks, supply-chain disruption, workplace risks and personal emergencies affecting owners and workers are putting them under growing strain.
Insurance can help a business keep running and recover after a disaster, but take-up remains low because of limited awareness, perceived costs and products that do not fit small firms. Across South and Southeast Asia, 95% of small businesses lack financial protection, according to Generali.
The challenge wants proven products that reach more businesses
The organisers are looking for insurance products and distribution models that already work and cover health events, business interruption and asset loss. Insurers, insurtechs, technology providers, social enterprises and distribution companies registered in India can apply. Priority goes to ideas that use technology to cut costs, bundle insurance with financial services, reach businesses in new ways or improve financial literacy.
“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.” — Angela Lusigi, Resident Representative, UNDP India
A similar challenge in Thailand has already funded two winners
The partnership ran the same kind of challenge in Thailand, where two winners each received $40,000 and technical support. One embeds micro health and life cover into payroll and gig-work platforms; the other is an AI tool that helps business owners compare insurance packages.
Building resilience for small producers is a recurring theme in development funding, from India's shops to herders adapting to harsher winters in Mongolia.
Applications for the India challenge close on 20 November 2026, and the winners are expected to be announced in February 2027.
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