In 2024, microinsurance reached 344 million people across 37 countries, marking a 3.9% increase from the previous year, according to the latest report from the Microinsurance Network (MiN). This expansion highlights the growing role of microinsurance in supporting low-income families.
The written premiums for microinsurance products rose to $6.2 billion, up from $5.8 billion in 2023. The Landscape of Microinsurance 2024 report outlines a broadening scope of coverage, particularly with products addressing climate risks. Life and funeral insurance remain the dominant categories, but 112 new products now cover more than 42 million individuals against climate-related risks.
Notably, the introduction of property and income insurance products has nearly doubled in recent years. New offerings in personal accident and agriculture insurance have also emerged, reflecting the increasing diversification of the market.
Despite these advancements, the protection gap in microinsurance remains substantial. The potential microinsurance market in the 37 countries studied is estimated to include nearly 3 billion people, with a potential premium value of $41 billion. However, current coverage only reaches 12% of the target population and accounts for just 15% of the market’s estimated value. This underscores both the urgent need for expanded coverage and a significant business opportunity for insurers.
Governments, donors, and regulators are increasingly backing the microinsurance market. Subsidies are playing a key role in expanding coverage, especially in the agricultural sector, where 58% of products receive financial support. Furthermore, 40 countries have implemented microinsurance-specific policies, while another 16 are in the process of developing regulatory frameworks.
Among the top five countries with the highest microinsurance penetration—Peru, the Philippines, Zambia, and Zimbabwe—four have introduced dedicated regulations, highlighting the importance of regulatory frameworks in fostering market growth.
Distribution and payment channels continue to be critical to improving access to microinsurance. While financial institutions, microfinance groups, and brokers remain the dominant distributors, digital platforms and mobile network operators are increasing their presence. In Africa, mobile operators now serve 2.5 million people, and new partnerships with government networks, public service providers, and mass-market distributors are emerging.
The report also notes that microinsurance products tend to see significant growth after three to four years, requiring long-term investment. Mature products generate nearly $500,000 in premiums, with claims ratios improving over time. Older products show a median claims ratio of 25%, compared to 18% for newer ones. Larger schemes, covering more than 500,000 people, report a median claims ratio of 28%, while smaller schemes maintain a lower ratio of 9%.
In terms of gender equity, the report emphasizes the need for improved data collection, as women are disproportionately affected by risks such as climate change and health crises. While limited gender-specific data exists, the study suggests that distribution channels influence the proportion of women covered. Insurers are urged to develop targeted strategies to reach underserved women, particularly in property and income insurance.
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