Micro, small and medium enterprises (MSMEs) are the backbone of Thailand’s economy. They account for more than 99% of all registered businesses and employ the majority of the private sector workforce. MSMEs power Thailand’s tourism, food and beverage, logistics, light manufacturing, and agricultural value chains — generating income for millions of families and anchoring local economies nationwide.
Despite their contribution to socio-economic growth and development, MSME’s remain highly vulnerable to a variety of climate and weather-related risks. In the face of these risks, Generali and the United Nations Development Programme (UNDP) have partnered to develop research, tools and innovative insurance solutions to build the resilience of Thailand’s MSMEs, communities and value chains. This includes a Health & Well-being Toolkit called ‘Better Health, Better Business’ to build MSME’s awareness and understanding of risks, and an Insurance Innovation Challenge to incentivize the development of inclusive, localized MSME insurance solutions.
Generali and the United Nations Development Programme have partnered to support developing countries, communities and businesses access innovative insurance solutions, tools, and research that enhance their resilience to climate and health risks
Under this multi-year partnership, Generali has committed technical and financial resources to UNDP’s Insurance and Risk Finance Facility (IRFF) in order to increase the socioeconomic wellbeing of some of the world’s most vulnerable people and places. The partnership blends Generali’s insurance expertise with UNDP’s long-term focus on financing and development.
Generali, as a responsible corporate citizen, is strongly committed to public-private partnerships and to supporting through its expertise public bodies to reach their objectives. This includes calls to both policymakers and businesses. The former are encouraged to engage with SMEs in a targeted way, with policies to direct investments toward appropriate products and services that support more agile business operations, while SMEs are invited to invest in their own adaptability to ensure business continuity and profitability in a changing climate.
Learn more about the partnership:
Overview
Micro, small and medium enterprises (MSMEs) are the backbone of Thailand’s economy. They account for more than 99% of all registered businesses and employ the majority of the private sector workforce. MSMEs power Thailand’s tourism, food and beverage, logistics, light manufacturing, and agricultural value chains — generating income for millions of families and anchoring local economies nationwide.
However, these critical economic actors are increasingly vulnerable to an often-overlooked threat: the deteriorating health and well-being of their owners and employees caused by persistent air pollution. Air quality in Thailand has deteriorated in recent years, with 2023 seeing annual average PM2.5 concentrations in most cities far exceeding the 20 µg/m³ “Good Quality Air” threshold set by the Pollution Control Department.
—about 30 times smaller than the width of a human hair. These tiny particles are released into the air from sources like vehicle exhaust, industrial emissions, burning of crops, and even cooking.
Because PM2.5 is so small, it can penetrate deep into the lungs and even enter the bloodstream, posing serious health risks. Exposure to high levels of PM2.5 is linked to respiratory problems, heart disease, stroke, and can worsen conditions like asthma.
Thailand often experiences high PM2.5 levels, especially during:
The health toll is already visible. Months with PM2.5 levels above the safe threshold correlate with significantly higher outpatient department (OPD) visits for pollution-related diseases among SME workers. In Bangkok, OPD frequency during high-pollution months was 8–14% higher than during cleaner months, and it rose 28–35% year-on-year alongside rising PM2.5 levels due to rising climate risks.
MSMEs typically rely on a small, dedicated team. When owners or key staff fall ill, business operations are interrupted, leading to delayed orders, missed opportunities, and reduced revenue.
Increased absenteeism, medical expenses, lost workdays, medical expenses, and staff turnover raise operating costs — which many MSMEs cannot afford.
Declining productivity and morale weaken market competitiveness, stalling business expansion and deterring new entrepreneurs.
Given MSMEs’ central role in employment and supply chains, widespread health-related disruptions could slow Thailand’s economic growth with a ripple effect in the regional and global economy, undermining progress toward the Sustainable Development Goals
health and well-being considerations are rarely integrated into MSME risk management or business continuity planning, leaving a systemic blind spot in Thailand’s economic resilience.
About the Partnership (same inputs as from Malaysia’s?)
Under this multiyear partnership, Generali and the Insurance and Risk Finance Facility (IRFF) led by UNDP are blending Generali’s insurance expertise with UNDP’s long-term focus on financing and development to increase the socioeconomic wellbeing of some of the world’s most vulnerable people and places. Our partnership brings together leading organizations to equip MSMEs with practical tools and resources for safeguarding health and well-being—ensuring business continuity and supporting sustainable economic growth. Learn more about the partnership.About the Tool
Equip MSME owners and managers with knowledge about how air pollution and other workplace health risks can disrupt operations, reduce productivity, and threaten business continuity.
Provide an easy-to-use self-assessment where MSMEs input basic business information (location, sector, workforce size, workplace conditions) to estimate their exposure to health and pollution-related risks.
Demonstrate to users how poor health outcomes among owners or employees can lead to operational disruptions, revenue losses, absenteeism, and increased costs, reinforcing the business case for proactive risk management.
Deliver tailored cost – effective recommendations (e.g., better ventilation, protective equipment, flexible scheduling, health monitoring) suited to the MSME’s size and sector.
Guide users to relevant occupational health programs, public health alerts, affordable health insurance products, workplace safety guidelines, and financial incentives.
Encourage integration of health and well-being considerations into MSME continuity planning and resilience strategies, fostering longer-term behavioral and institutional change.
Aggregate anonymized usage data to help policymakers, industry groups, and insurers understand sector-wide health risk trends and design targeted support mechanisms.
Safeguarding the health of MSME owners and employees is not just a social responsibility — it is an economic imperative. As Thailand advances toward inclusive and sustainable development, tackling air pollution and protecting SME workforce health will be essential to sustaining the country’s growth engine. Better Health, Better Business for a brighter future.
The air quality depends on the concentration of very small invisible particles in the air, mostly coming from pollution (cars, factories, smoke). They can enter the lungs and affect health, especially when their level is high.
Join the global community of insurance innovators and make a difference for MSME workers in Thailand.
In Thailand, MSMEs contribute over 35% of GDP and employ more than 70% of the workforce, but are under increasing strain from global risks and market volatility.
The sustainability and productivity of Thailand’s MSME sector depend heavily on the well-being of its workforce.
Despite progress in achieving universal health coverage in Thailand, many MSME workers remain excluded from social security schemes and are vulnerable to financial hardship due to rising medical expenses.
Limited access to healthcare and financial protection can lead to increased absenteeism, reduced productivity, and economic insecurity for both workers and MSMEs.
Challenge Overview
To address these challenges, UNDP and Generali have launched an Insurance Innovation Challenge to identify, support, and scale inclusive, localized health and life insurance solutions for MSME workers.
By fostering and scaling up insurance solutions, the Innovation Challenge will contribute to Thailand’s social protection framework, strengthen economic stability, reduce vulnerabilities, and provide a critical safety net for MSME workers in the country.
Two winning solutions will be awarded up to US$40,000, as well as receive technical assistance and be invited to join a global community of insurance innovators
Focus Areas
The UNDP – Generali Innovation Challenge for Thailand will focus on:
Other favorable product features include:
Scaling up of existing innovative insurance products that specifically focus on MSMEs in Thailand and employ innovative approaches and technologies such as AI;
The project should demonstrate self-sustainability by the end of the agreed support period, which requires achieving sufficient scale and increasing efficiency and impact.
Not simply selling insurance in isolation, but complementing other services demanded by MSMEs through embedded approaches;
Should show a demonstrable impact on the SDGs
The proposed project must have a potential for financial, social and environmental sustainability and scale-up;
Innovations should also include a focus on ensuring gender equity. Applicants must ensure that gender perspectives and attention to the goal of gender equality are central to the proposed innovation.
