Insurance is a financial tool that can help households and business better manage risks, without having to resort to use (harmful) coping strategies, such as selling assets, depleting savings or borrowing money at high interest rates. However, it can be a complicated tool to understand. Insurance terminology, like ‘premium’, ‘claims’, ‘insured events’, ‘pay out’ and ‘trigger’, and its way of working can be very confusing, especially to individuals who have never purchased insurance before. And this in itself can be a barrier to access this important financial product.

For this reason, the ILO’s Social Finance financial education efforts also focus on insurance education, including its most complex forms such as index insurance. We do that by partnering with insurance providers, distribution channels, insurance associations and governments to educate potential customers on how insurance works as well as its pros and cons.

Interested in seeing an example of our work in this domain? Check out this poster we have created to educate smallholder farmers in Zambia, explaining the benefits and functioning of excess rainfall insurance in the country.