Session 2

The diverse faces of the informal sector: takeaways for insurance

29 September 2020
3:30 – 4:45pm Manila time



Discussions around the informal sector have often considered it as a homogeneous group. This view may have a negative impact on the development of appropriate protection and insurance solutions for this sector where heterogeneity in terms poverty, age, education and skills among others exist. Social protection schemes and DRF solutions can effectively enhance the resilience of the informal sector only if adjusted to the profile of the household or business segment to be protected. This includes considering not only the composition, size, location, assets, sector and other explicit features, but also the more implicit characteristics, such as the gender dynamics in low-income households, cashflow sources and timing, businesses and sectors that are more vulnerable to disaster risks.

In this light, the aim of the session is to understand how the characteristics of different household and business segments in the informal sector could and should be considered in developing DRF solutions for the vulnerable. More specifically:

  1. How can low-income households and informal micro and small enterprises be segmented ? How should these differences be considered in developing social protection and DRF solutions? What other factors should be considered?
  2. Women mostly have lower social protection coverage and they often work in sectors critically affected by disasters such as COVID-19 . How should gender-lens be more effectively integrated into the DRF solutions?
  3. In accordance with the differing segments, what adjustments are necessary in the procedures and requirements of delivery of financial risk protection solution, including using technology?