Dominican Republic Superintendent of Insurance and UNDP to Take Actions to Strengthen the Regulatory Framework of the Country’s Insurance Sector

The Dominican Republic (DR) is the first country in the Caribbean to join this initiative, and the fifth in Latin America.

29 de Febrero de 2024
Julia Ramirez, PNUD

Distrito Nacional. The Superintendent of Insurance and the United Nations Development Programme (UNDP) have committed to join forces to strengthen the regulatory and normative framework of the insurance sector in the Dominican Republic. 

With the signing of an agreement, the entities have indicated that they will collaborate on the generation of knowledge and technical expertise in insurance, both in the public and private sectors, by actively supporting the development of specialized capacities with a focus on underserved populations. 

Additionally, they will promote collaborative spaces for knowledge creation, exchange and dissemination, analysis and dialogue on inclusive insurance and best practices.  

Josefa Castillo, Superintendent of Insurance, and Inka Mattila, Resident Representative of UNDP in the Dominican Republic were signatories to the agreement. The two institutions also indicated a collaboration to promote a culture of insurance that seeks to contribute to the development of a more informed, prepared, and protected society against risks.  In particular, the management of risks associated with climate change, which disproportionately affects vulnerable households and communities. 

The agreement is part of UNDP’s Insurance and Risk Financing Facility (IRFF), supported by the government of Germany and promoted by UNDP globally to protect lives, build financial resilience and drive inclusive economic growth. 

Insurance solutions, risk transfer and collaboration with the insurance industry can significantly contribute to the achievement and fulfillment of the Sustainable Development Goals (SDGs), reducing vulnerabilities and protecting the advances associated with human development. Additionally, UNDP's Strategic Plan 2022-2025 promotes digitization, strategic innovation, and development financing as enablers for development. 

Inka Mattila Resident Representative of UNDP in the Dominican Republic highlighted that, within the framework of the global initiative for inclusive risk financing supported by Germany, the Dominican Republic is the first in the Caribbean subregion and the fifth in Latin America and the Caribbean to join this initiative, along with Mexico, Colombia, Argentina, and Ecuador. 

Like many countries in the region, the Dominican Republic faces multiple climate and social risks that threaten the well-being and economic stability of the population. Among these risks are hurricanes, earthquakes, droughts, floods and epidemics. According to the Global Climate Risk Index (CRI) of 181 countries, the Dominican Republic ranks as the 12th most prone to extreme weather events. 

Likewise, the Climate Shock Vulnerability Indicator (IVACC) developed by UNDP and the Dominican Republic government has reported that 25.1% of households in low-income areas of the country are highly vulnerable to storms and hurricanes. 

This highlights the importance of strengthening policies and actions aimed at enhancing financial resilience to climate risks which have significant impacts on the lives and livelihoods of poor and vulnerable populations. 

This alliance will strengthen and consolidate a conducive environment for the insurance sector, making risk transfer mechanisms more accessible and contributing to the reduction of vulnerability. 

Also attending the event for UNDP were Daniela Perozo, Coordinator of Development Financing Initiatives, Julia Ramírez, Press Officer, and Víctor Rodríguez, Private Sector Specialist. 

The Superintendent of Insurance was accompanied by Juan M. Hernández Buret, Legal Director, as well as other directors and officials from the superintendency.