This report presents a fresh approach to scaling financial protection for MSMEs in Southeast Asia through innovative insurance solutions. It highlights the challenges MSMEs face, including limited access to financing, technology, and effective risk management mechanisms, while emphasizing the rising threats of climate change and health crises.

With less than 5% of MSMEs in ASEAN insured, the report underscores a dual opportunity: addressing a critical development challenge and tapping into a vast, underserved market. It identifies barriers insurers face, such as MSME diversity, limited data, and the high proportion of unbanked businesses.

Focusing on Malaysia and Thailand, the report advocates for segmenting MSMEs based on value chains to tailor customer-centric solutions. It promotes a holistic approach, combining risk transfer and mitigation tools to build financial resilience. The findings aim to help insurers design and distribute products that meet the unique needs of MSMEs, enhancing their capacity to navigate risks and sustain their socio-economic contributions.