Research on Microinsurance Explores How to Tap This “Unconventional Market”
Thursday, September 24, 2015
Asia accounts for 80% of the global microinsurance industry, followed by Latin America and Africa with 15% and 5% respectively, according to ILO and Munich Re. Asia had the highest number of people with microinsurance cover, at 170.4 million in 2012.
Despite the rising penetration of funeral insurance in South Africa and mobile microinsurance (MMI) services in the Sub-Saharan African (SSA) market, overall microinsurance coverage is still very low in Africa. In Latin America, growth in microinsurance coverage is led by commercial insurers, unlike Asia and Africa, where markets are driven by subsidies, government funds and donors.
The report also discusses the dynamics of microinsurance business, providing insights into the microinsurance supply chain, business models, microinsurance products and the targeted consumer. Insurers are considering microinsurance as a long-term growth strategy in new and potentially high-growth markets.
Insurers are increasingly collaborating with government agencies, non-government organizations (NGOs) and development organizations to create a market for microinsurance.