LocationsGenerali and UNDP are building MSME resilience in Thailand
November 27, 2024
The United Nations Development Programme (UNDP) and the Generali Thailand have announced a collaboration, building upon a global partnership, to support the growth and sustainability of Micro, Small, and Medium Enterprises (MSME) in Thailand. The initiative aims to enhance MSMEs, which are crucial to the country’s economic structure, and help them prepare for future challenges. The partnership begins with developing an MSME Social Protection Framework, a risk assessment tool designed to improve readiness and raise awareness of the risks facing entrepreneurs’ while providing strategies to mitigate them. This includes narrowing the protection gap for business operators through insurance solutions designed to strengthen business stability and sustainability.
In 2024, UNDP Insurance and Risk Finance Facility and the Generali launched a joint research report titled “Building MSME Resilience in Southeast Asia”, focusing on selected value chains in Thailand and Malaysia. The report proposes an alternative approach to identifying the risks and needs of MSMEs, developing risk management and insurance services, and delivering these solutions to the local business community.
The research found that MSMEs make up the majority of enterprises in Southeast Asia, comprising 99.6% of all businesses in Thailand and 97.4% in Malaysia. They act as both a pillar and a driver of socio-economic development. The research also emphasized that understanding the differences in MSME value chain characteristics, risk profiles and protection needs is important for offering suitable insurance solutions.
The findings will now be applied in Thailand with the aim to strengthen the risk management capabilities and support sustainable business practices of local MSMEs. The initiative has two main goals: raising awareness among entrepreneurs about resilience and enhancing their operational capabilities, as well as expanding employee protection to improve quality of life amid economic shifts, natural disasters, and climate change.
Ms. Irina Goryunova, UNDP Deputy Resident Representative, remarked, “The growth of Thai MSMEs is increasingly threatened by various risks to business continuity, including climate risks, and by the redirection of scarce resources away from investment toward shock recovery. Insurance is a key risk management tool that can help MSMEs recover from financial shocks. However, the market faces challenges, including mismatched or limited products, inadequate distribution channels, and low awareness of risk protection. Insurance solutions tailored to the distinct risks faced by MSMEs, combined with holistic risk management, are critical to enabling them to thrive and continue driving the Thai economy. UNDP is proud to continue its global collaboration with Generali, bringing it closer to Thailand to help Thai MSMEs better understand and manage their risks.”
Irina Goryunova, UNDP Deputy Resident Representative to Thailand
Mr. Roberto Leonardi, Generali Asia Regional Officer, said, “MSMEs are the beating heart of the Thai economy as well as so many others in Asia. Working with them to build resilience and develop solutions to overcome real, local challenges is what our work with the UNDP is all about. I’m really encouraged by the progress made so far in Malaysia and look forward to carrying this impact forward to the MSME community in Thailand. Insurance plays a central role in building resilience and mitigating risks in a rapidly changing environment, and I’m confident that we will equip entrepreneurs with the insights and guidance they need to achieve the growth they deserve.”
Mr. Arsh Kaumi, Generali Thailand Country Manager & CEO, said, “The “Building MSME Resilience in Southeast Asia” research further revealed that MSMEs in Thailand face multiple business risks. These include challenges from access to financing, natural disasters, and climate related issues such as global warming, air pollution and flooding, injury and health crises like pandemics also pose significant challenges, all of which can impact business operations. Through our collaboration with the UNDP, we aim to drive impactful change, equipping MSMEs with financial protection and risk management tools to foster growth, and meaningful contributions to their communities and economics. We look forward to working closely with UNDP to support MSMEs in building resilience that will benefit future generations and provide a platform for MSMEs sustainable growth.
Today’s event announcing the collaboration between UNDP and Thailand was honored by the presence and opening remarks of the Italian Ambassador to Thailand, H.E. Paolo Dionisi. The event also featured a discussion on strengthening MSMEs, with senior executives from the United Nations Development Programme (UNDP), the Office of Small and Medium Enterprises Promotion (OSMEP), as well as representatives from the business sector, partners, and Generali executives from the Asia region, who shared insights and exchanged opinions.
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The broader UNDP-Generali partnership
The United Nations Development Programme and the Generali have partnered to support developing countries with access to insurance and risk finance solutions that enhance the resilience of communities and local businesses.
Under this multi-year partnership, Generali has committed technical and financial resources to UNDP’s Insurance and Risk Finance Facility (IRFF) in order to increase the socioeconomic wellbeing of some of the world’s most vulnerable people and places. The partnership blends Generali’s insurance expertise with UNDP’s long-term focus on financing and development.
Moreover, through the partnership, UNDP and Generali are contributing towards the InsuResilience Vision 2025, which includes: reaching 500 million vulnerable people and covering them against climate and disaster shocks; protecting 150 million vulnerable people through microinsurance solutions; and putting insurance innovation at the heart of the UN’s Sustainable Development Goals and 2030 Agenda.
