The Maldives Monetary Authority (MMA) has signed an agreement with the United Nations Development Programme (UNDP) in the Maldives to begin collaboration on the Maldives Insurance Development Project. The agreement was signed by the Governor of MMA Ali Hashim and the Resident Representative of UNDP in the Maldives Enrico Gaveglia.
The agreement outlines a partnership between MMA and UNDP to develop the capacity of the insurance industry in the Maldives focusing on two key pillars: insurance regulation and insurance operations. The project was formulated based on the findings of the Insurance Sector Diagnostic Study completed in January and the support of the corporate offer of UNDP on insurance. The objectives of the project are to develop the actuarial and operations capacity of the insurance industry in the Maldives, to ascertain the feasibility of nature-based insurance products in the Maldives, and to develop key regulations.
Speaking at the ceremony, Hashim highlighted a vision of a transformative journey for the insurance industry in the Maldives through the strategic partnership. He emphasised that by strengthening the regulatory framework and enhancing operational capabilities, they are not only fortifying stability in their financial landscape but also fostering resilience against the unique challenges inherent in the environment. He also said that the collaboration between MMA and UNDP marks a significant step towards sustainable development and economic safeguarding for the nation.
Meanwhile, Gaveglia said that the ability to protect the country’s natural and physical assets has become of vital importance with the effects of climate change intensifying around the world and with Maldives being in a position of vulnerability to the damage it poses. He mentioned that the economic cost of climate change is increasing alarmingly and unpredictably. He also said that insurance is an effective adaptation measure that can be leveraged as a new financing tool to protect vulnerable communities and investments.