Structuring an indicator system for promoting and measuring high-quality Inclusive Insurance development

By Dirk Reinhard*

On 20 August 2025, policymakers, academics, regulators and industry leaders gathered in Beijing for the International Symposium on Structuring an Indicator System for Promoting and Measuring High-Quality Inclusive Insurance Development. Organised by the China Inclusive Insurance Network (CIIN), with support from the Chinese Academy of Financial Inclusion (CAFI) and the Munich Re Foundation, the event marked a significant milestone in advancing inclusive insurance as a national and global priority. The symposium featured keynote speeches, policy interpretations and academic insights, as well as a dynamic roundtable dialogue, all of which addressed the pressing challenges and opportunities in inclusive insurance. The discussions emphasised the evolution of inclusive insurance into a cornerstone of social protection, poverty alleviation and climate resilience, while retaining its fundamental commercial attributes.

Inclusive insurance: a global imperative

The event opened with a keynote speech by Dirk Reinhard, Vice Chair of the Munich Re Foundation. He emphasised the importance of inclusive insurance as a tool for sustainable economic development and as a safeguard against the growing risks of climate change. He cited South Asia, with its vast uninsured populations, as a priority region where the rapid expansion of insurance services could prevent households from falling into poverty following adverse events. Reinhard emphasised that inclusive insurance is not merely a financial instrument, but also drives multiple Sustainable Development Goals (SDGs), including poverty reduction, gender equality, health, and climate adaptation.

Technological innovation has played a key role in increasing access to insurance, particularly through smartphones, mobile payments, and digital platforms. However, Reinhard also noted that there are still significant barriers: low trust, limited infrastructure and high transaction costs associated with low-premium products. He advocated for the ILO’s AAARS framework — Accessible, Affordable, Available, Responsive and Simple — arguing that products must be tailored to customer needs rather than being imposed as abstract financial solutions. The call to action was clear: insurers must combine digitalisation, market analysis, and customer engagement to build sustainable, scalable, and socially valuable insurance systems.

Policy directions in China

From a domestic perspective, Chen Jian, Director at the National Financial Regulatory Administration (NFRA), outlined China’s progress in developing a comprehensive design for inclusive insurance. A major milestone was reached in June 2024 when national guidelines were established to set out the objectives, principles and monitoring systems for inclusive insurance development over the next five years.

The country has encouraged insurers to collaborate with local governments and community organisations to develop customised products for farmers, migrant workers, and flexible employees. It has also piloted coverage for vulnerable groups, including the elderly and children. Regional bureaus have been urged to adapt their strategies to local conditions to ensure a 'last mile' connection between insurance services and citizens. Nonetheless, challenges remain. Public awareness and trust are limited, risk management capacity is uneven, and regulatory systems must keep pace with rapid change. Looking ahead, Chen stressed three priorities:

1. Safeguarding livelihoods by enriching product supply and innovating protection models.

2. Addressing weaknesses through statistical system upgrades and digital transformation.

3. Preventing risks by strengthening supervision and compliance.

Chen concluded that inclusive insurance has a dual mission and responsibility: to contribute not just to financial markets, but also to the well-being of citizens.

The commercial logic of inclusive insurance

Xu Jinghui, Academic Advisor at CAFI, addressed one of the most pressing questions: how can inclusive insurance remain financially sustainable? Using Huiminbao, China’s flagship inclusive health insurance product, as an example, Xu noted concerns about its long-term viability. He argued that inclusive insurance must retain its commercial attributes of accessibility, affordability and sustainability. Without commercial discipline, inclusive insurance risks becoming a temporary welfare measure or fiscal burden. Xu highlighted three operational principles that are essential for sustainability:

·         The law of large numbers to diversify risks.

·         Scientific pricing, underpinned by actuarial models and data.

·         Risk prevention and control, supported by digital tools.

Xu also addressed the so-called 'impossible trinity' of inclusive insurance, which is about balancing low premiums, wide coverage and profitability. He suggested that innovation, risk reduction and technology-enabled services could ease this tension and enable inclusive insurance to deliver social value and commercial returns.

Roundtable Insights: Innovation and practice

The symposium's roundtable brought together representatives from academia, industry and local government to share the practical experiences of various industry players. The Xiaojing Xianghai Insurance Agency serves nearly 4 million rural clients by offering family-based policies, digital platforms, accessible claims services and charitable funds for the poorest in society. Ping An applies a structured approach that includes sustainability committees, performance metrics and technology-driven product innovation. CPIC Life emphasised the importance of political alignment and product diversification, citing its flagship critical illness and long-term care insurance initiatives. Yuanbao Group emphasised the power of internet-based distribution in expanding basic medical insurance to underserved households. The representative from the Central University of Finance and Economics (CUFE) framed inclusive insurance within broader risk management principles, stressing the roles of reinsurance, moderation, and government support. Together, these perspectives highlight that innovation in product design, technology adoption and service delivery is essential for reaching vulnerable groups without compromising sustainability.

The five-year outlook

Participants identified three primary drivers of inclusive insurance development:

1. Commercial drivers: insurers must balance profitability with accessibility by leveraging actuarial science, reinsurance and digital efficiency.
2. Governmental drivers: policy support, fiscal subsidies and official endorsement can lower transaction costs and boost public trust.
3. Technological drivers: Big data, artificial intelligence and mobile platforms can reduce operational costs and enable precise targeting.

The future landscape will be shaped by the interaction between bottom-up customer demand and top-down regulatory frameworks. Looking ahead, the next five years will be pivotal for inclusive insurance in China and beyond. The closing discussion at the symposium revealed several emerging trends:

• Expansion of coverage, particularly in long-term care, occupational injury and chronic illness insurance.
• Diversification of product forms, combining financial compensation with service-based models (e.g. health management and IoT-enabled risk monitoring).
• Cross-industry collaboration, where insurers partner with technology companies, healthcare providers and community organisations.
• Policy experimentation, as demonstrated by Ningbo’s role as a national insurance innovation zone producing hundreds of localised products.

Speakers agreed that inclusive insurance should be regarded as a form of social infrastructure that can reshape risk structures, foster resilience, and redefine the relationship between insurance and society.

Conclusion

The ultimate goal of inclusive insurance is to increase coverage, making insurance straightforward, convenient and affordable for all citizens. They acknowledged the ongoing challenges, particularly the need to strike a balance between coverage, claims, and premiums. However, participants expressed optimism that, with government guidance, market innovation and international collaboration, inclusive insurance could enter a new phase of development. Inclusive insurance requires not only financial engineering, but also community trust, international exchange and a willingness to confront trade-offs. China’s achievements and ambitions position it as a leader in the global conversation on inclusive insurance. Ultimately, the symposium demonstrated that inclusive insurance is a social contract, not just a financial product.

*The summary is based on a Symposium Meeting Memo produced by CAFI/CIIN. Thank you to the entire CAFI/CIIN team for the support.