Microinsurance in Asia and Oceania Grows by 40%
Wednesday, November 6, 2013
Over 170 million low-income people are benefitting in the region.
According to new research released by the Munich Re Foundation and GIZ, the microinsurance sector in Asia and Oceania has reached 172 million lives and properties covered, representing a 40% annual growth rate between 2010 and 2012. India is leading the market at over 100 million, whilst Malaysia and Indonesia emerge as having the most vibrant microinsurance markets with a growth rate of 185% and over 100% respectively, over the same time period.
Despite these encouraging achievements, the microinsurance sector today covers less than 5% of the people living in Asiaand Oceania. “When low-income people are unable to manage risk, they cannot break out of the cycle of poverty,” says Craig Churchill, Chair of the Microinsurance Network and Head of ILO’s Microinsurance Innovation Facility. For this reason, “access to effective insurance by low income people is essential to sustainable development.”