The social value of insurance

In 1943, American psychologist Abraham Maslow published A Theory of Human Motivation, a trial that attained immediate notoriety in the fields of psychology and social development. In this work, he formulated a hierarchy of human needs that is still valid today. The well-known Maslow’s hierarchy of needs establishes five levels of human needs, specifying that as the most basic ones, located at the bottom of the pyramid, are fulfilled, the following levels can gradually develop.

Protection and safety are on the second stage of the pyramid, immediately after the physiological needs that ensure survival. Protection against the risks and adverse events that may arise in life is precisely what insurance companies provide. We are essential agents when it comes to making changes necessary for social progress more dynamic. Risks are a part of life, and by providing our policyholders with the necessary protection against them, we are able to minimize their impact and, in doing so, benefit society as a whole. In this way, we also increase investments in projects that promote priceless social value.

We should not forget that insurance companies’ own financial activity implies a clear benefit for society by distributing risks. When we take out insurance, we are assuming with our contribution (together with that of many other people) to cover the expenses generated by the claims suffered by a few. A protection mechanism that is therefore part of our social DNA and that covers a significant percentage of the population.

Insurance represents a protection network that promotes economic progress and social cohesion. A network that is increasingly broad and sustainable, as it facilitates access to insurance for all population groups, including the most vulnerable, such as people with disabilities or those with limited financial resources. The latest analysis found in The Landscape of Microinsurance 2024 states that in the last three years there has been a 70% increase in insured persons worldwide. In the case of Spain, for example, more than 12 million people have medical insurance and 21 million have life insurance that offers protection to their loved ones in the event of death, according to the last Insurance Social Report.

At MAPFRE, we have spent years investing in social commitment by promoting accessibility to insurance for all population groups. In addition, to expand our social function, we develop different programs that promote inclusion and diversity, employability of people, a financial and insurance culture that helps make optimal decisions on equity issues and sustainable management models throughout our value chain.

To prevent any population group from being discriminated against and from seeing difficulties accessing insurance, we have established agreements with various not-for-profit organizations. Based on these agreements, we have been able to launch specific programs for population groups in a situation or vulnerability risk.

Financial and tax advice is of vital importance to all population groups in our society. By acquiring solid financial and insurance literacy, individuals can maximize their savings, make more informed investment decisions, increase the amount of their pensions, and ultimately improve their quality of life. At MAPFRE, we have a strong commitment to both equality and the vulnerable rural environment. In Spain we have an agreement with the Confederation of Federations and Associations of Families and Women of the Rural Environment (AFAMMER). Through it, we provide financial, tax, and estate planning advice to its more than 180,000 members across Spain.

In this same regard, the younger population segment is also part of our advisory priorities. We have launched the campaign ‘Get ready with MAPFRE’ (#GRWMAPFRE), geared toward Generation Z, through the social network TikTok, to provide educational, practical, and useful content that will help them make informed decisions related to risk, savings, and finances.

The social function of insurance in providing protection and security to the population becomes especially evident when it promotes accessibility to lower-income social groups. Along these lines, we have also launched ‘MAPFRE na Favela’ in Brazil. Thanks to this ambitious project, millions of people living in substandard housing on the outskirts of cities like Rio de Janeiro or São Paulo are benefiting from microinsurance that helps cover basic expenses such as healthcare and housing. Likewise, based on the findings of previous research, the project is successfully supporting numerous micro-entrepreneurs living in favelas in developing their business models.

Aware that the lack of adequate coverage affects most severely those individuals and communities most vulnerable to environmental events, we support the insurance sector in developing countries by offering protection against potential natural disasters and facilitating access to insurance for their populations.

Beyond the most vulnerable population, for another very important social group, the elderly and their families, we have launched the Generación Senior program in Spain, which provides this large population segment with insurance products and coverage tailored to their specific needs. The program also includes a range of free services, such as the golden phone and home delivery pharmacy, which help combat loneliness, both physically and psychologically, for many of these individuals who face isolation.

RELATED ARTICLES: