Closing the protection gap: How postal networks can deliver inclusive insurance to the communities that need it most

In a world where more than 4 billion people – mainly in low- and middle-income segments – still lack adequate insurance coverage, the concept of inclusive insurance has emerged as a powerful means to strengthen financial resilience and social protection. Yet many vulnerable communities continue to face barriers to access. This is where postal networks come in: trusted public service providers with deep community roots, uniquely positioned to bridge the insurance gap.

Why inclusive insurance matters

Inclusive insurance refers to affordable, accessible and appropriate insurance products tailored to the needs of underserved populations – low-income households, informal workers and rural communities that are often excluded from traditional financial systems.

Its importance cannot be overstated. Insurance offers a safety net against life’s uncertainties – illness, accidents, natural disasters and loss of income. For families living close to the poverty line, even a small financial shock can have devastating consequences.

Beyond individual protection, inclusive insurance advances the broader Sustainable Development Goals (SDGs) by supporting financial inclusion. It also fosters social equity and strengthens community resilience. In an era marked by climate change, pandemics and economic instability, inclusive insurance is more than a financial product – it is a lifeline.

Postal networks: A hidden asset in financial inclusion

Postal networks reach 7.3 billion people worldwide (source: State of the Postal Sector 2024)  and are often the only formal service providers in remote and rural areas. Their trusted brand, physical reach and strong community ties make them natural partners in extending insurance coverage to underserved populations.

According to the UPU’s recent study Scaling-up postal inclusive insurance, 53% of postal operators now offer insurance services – up from 38% in 2016. This growth highlights the sector’s potential to become a key factor in financial inclusion. Many Posts are diversifying their financial offerings – from payments and savings to insurance – creating new revenue streams while fulfilling their social mission.

The study analyzed 26 postal initiatives and eight in-depth case studies across six countries, identifying three main operating models:
 

• Agency partnerships, where Posts act on behalf of insurers;
• Full-fledged partnerships, involving joint product development and operations;
• Own insurance models, where Posts carry the risk and develop their own products.

These models show that with the right strategy and partnerships, postal networks can become sustainable, trusted insurance providers.

Building a sustainable inclusive insurance business

For Posts to build viable and scalable insurance services, several pillars are essential:
 

1. Customer-centred design: Products must be simple, affordable and relevant. Understanding the realities and needs of low-income and informal workers is key to designing insurance that truly provides protection.

2. Digital transformation: Mobile platforms, digital payments and insurtech solutions can reduce costs and increase accessibility, especially in remote areas.

3. Strategic partnerships: Collaboration with insurers, governments, non-governmental organizations and fintechs brings expertise, funding and innovation. Public–private partnerships are particularly effective in scaling impact.

4. Capacity building: Training postal staff, upgrading infrastructure and improving customer financial literacy are critical for long-term success.

5. Regulatory support: Governments and regulators must create enabling environments that allow Posts to offer insurance responsibly and sustainably.

6. Impact measurement: Tracking outcomes – such as coverage expansion, improved resilience and customer satisfaction – helps refine strategies and demonstrate value.

What matters most is that postal insurance initiatives are treated as strategic priorities, integrated into core postal operations and the products and solutions offered to customers. Postal inclusive insurance needs to be developed gradually with dedicated resources and expertise, and not as a side activity, as it requires sustained commitment to deliver tangible results and revenues.

Transforming communities through protection

When postal networks embrace inclusive insurance, they do more than diversify services – they transform lives. By extending protection to those who need it most, they help communities withstand shocks, recover faster and plan for a more secure future.

This is not only a business opportunity but also a mission that can drive meaningful progress. From reducing poverty and inequality to strengthening climate resilience, inclusive insurance delivered through postal networks can be a catalyst for change. This is precisely what we have started to build in Brazil with Correios, combining our shared expertise to reduce the protection gap.

Scaling up through global collaboration and the Postal Insurance Technical Assistance Facility

Postal inclusive insurance is one of the four pillars of the UPU’s Financial Inclusion Strategy, alongside digital payments, digital savings and microfinance. Expanding postal inclusive insurance access for micro, small and medium-sized enterprises (MSMEs), women, smallholder farmers, and youth requires active collaboration among the UPU, its member countries and private-sector insurance providers. Such cooperation is essential to enable Posts to access the latest inclusive insurance innovations, operating models, products and solutions – and to promote knowledge sharing and capacity building across the network.

To this end, the UPU has entered into a five-year partnership with AXA and CNP Assurances to advance inclusive insurance for underserved postal customers. Under this collaboration, we have launched the Postal Insurance Technical Assistance Facility (PITAF) – a new platform that strengthens the capacity of postal operators to deliver relevant insurance services, especially in rural and remote areas. Introduced in July 2025, PITAF has already attracted strong interest from UPU member countries, with the first participating postal operators to be announced soon. For any questions about the PITAF projects, contact PITAF@upu.int.


François Tritz
CEO, CNP Seguradora, Brazil
As CEO of CNP Seguradora, François is leading the company’s expansion into the open insurance market in Brazil. He has over 25 years of international experience in the financial and insurance sectors, including senior roles at BNP Paribas Cardif and the CNP Assurances Group.
 
Ihab Zaghloul
Financial Inclusion Programme Manager, UPU
As Financial Inclusion Programme Manager at the UPU International Bureau, Ihab leads initiatives to expand access to inclusive financial services through postal networks. He previously worked with American Express International, Visa Inc., Mastercard and the World Bank on digital inclusion and partnership development.