Microinsurance Global Market Report 2024

Microinsurance serves as a specialized insurance offering tailored for individuals and communities with lower income levels, delivering affordable coverage that meets their specific needs and financial constraints. It aims to offer financial protection in instances of health emergencies, crop losses, and property damage, thereby mitigating risks for this demographic.

The primary product categories within microinsurance include property insurance, health insurance, life insurance, index insurance, accidental death and disability insurance, and others. Property insurance provides financial protection against the loss, damage, or theft of physical assets, encompassing buildings and personal belongings. Microinsurance operates through various models, such as the partner agent model, full-service model, and provider-driven model. These offerings are provided by diverse providers, including commercially viable microinsurance, microinsurance facilitated through aid, or government-supported initiatives. The end-users of microinsurance span both business and personal sectors.

The microinsurance market research report is one of a series of new reports from The Business Research Company that provides microinsurance market statistics, including microinsurance industry global market size, regional shares, competitors with a microinsurance market share, detailed microinsurance market segments, market trends, and opportunities, and any further data you may need to thrive in the microinsurance industry. This microinsurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The microinsurance market size has grown strongly in recent years. It will grow from $89.05 billion in 2023 to $95.69 billion in 2024 at a compound annual growth rate (CAGR) of 7.5%. The growth observed during the historic period in the realm of microinsurance can be attributed to several key factors. These include financial inclusion initiatives that aimed to extend insurance coverage to individuals with lower income levels, the emergence and growth of microfinance institutions that facilitated access to financial services, government support and initiatives promoting inclusive insurance solutions, active involvement of non-governmental organizations (NGOs) and donors in supporting and promoting microinsurance programs, and market liberalization efforts that facilitated the expansion of such initiatives. These factors collectively contributed to the increased adoption and development of microinsurance during the historical period.

The microinsurance market size is expected to see strong growth in the next few years. It will grow to $126.39 billion in 2028 at a compound annual growth rate (CAGR) of 7.2%. The anticipated expansion during the forecast period is driven by factors such as health pandemics and associated risks, governmental social protection initiatives, advancements in rural and agricultural development, regulatory incentives, and initiatives aimed at fostering inclusion. Key trends expected in the forecast period encompass digital transformation and insurtech, collaborative ventures with fintech and telecom entities, the adoption of parametric insurance solutions, the rise of pay-per-use and on-demand insurance models, and the integration of blockchain for enhanced transparency and trust.

The anticipated surge in government initiatives dedicated to microinsurance is poised to significantly boost the microinsurance market's growth trajectory. These initiatives are focused efforts by governing bodies to introduce programs or policies that cater to specific needs and goals, particularly addressing the requirements of economically vulnerable populations and small-scale enterprises. An illustrative example occurred in October 2022 when the UN Capital Development Fund (UNCDF) introduced a microinsurance product in Vanuatu. Tailored to safeguard climate-vulnerable communities from the financial fallout of severe weather events, this initiative aimed at swiftly providing relief funds within 10-14 days post-disaster. Its primary beneficiaries included smallholder farmers, fishers, micro, small, and medium-sized enterprises (MSMEs), as well as individuals with disabilities. Hence, the proliferation of government initiatives dedicated to microinsurance is expected to propel the market.

The escalating necessity for micro-insurance solutions among end-users, particularly micro-enterprises and small enterprises, is predicted to significantly drive the expansion of the microinsurance market. Enterprises falling under these categories often grapple with various risks, including natural calamities, unforeseen market fluctuations, and accidents. Microinsurance emerges as a critical safety measure, offering coverage for the expenses associated with these risks, thereby mitigating financial vulnerabilities. As per the World Bank and International Finance Corporation (IFC) estimates in 2023, approximately 65 million firms and about 40% of formal micro, small, and medium-sized enterprises (MSMEs) in developing nations require an annual financial support of $5.2 trillion. This staggering amount stands at 1.4 times the current global MSME lending level, underscoring the pressing demand for micro-insurance solutions among these entities. Therefore, the rising demand for micro-insurance among micro-enterprises and small enterprises significantly fuels the microinsurance market.

Stringent regulations are poised to exert a negative impact on the future growth trajectory of the microinsurance market. These stringent rules can amplify compliance costs, restricting the ability of microinsurance providers to offer cost-effective products. Moreover, the market's highly fragmented nature, characterized by numerous small-scale players, poses challenges for these providers in adhering to regulations while maintaining affordable product offerings. As an illustration, as of July 2021, according to Ernst and Young, insurance companies specializing in microinsurance products are mandated to secure licensing from their respective country's regulatory authorities. Consequently, the stringent regulatory landscape acts as a hindrance to the market's expansion.

Leading enterprises within the microinsurance market are strategically focused on the development of sophisticated platforms such as bizmoProtect to enhance their reach in distribution and streamline claim processing, particularly among underserved populations. Platforms such as bizmoProtect are designed to facilitate diverse functionalities, including loan repayment for businesses, provision of affordable insurance products catering to low-income individuals, and the reduction of financial vulnerabilities faced by households, especially amid the COVID-19 pandemic. A case in point is Peppermint Innovation Ltd., an Australia-based fintech firm that introduced the bizmoProtect microinsurance product platform in March 2021. This platform enables the delivery of life and accident insurance products, leveraging the bizmoto agent network and platform. Accessible through Android phones, bizmoProtect allows customers to register their information, select insurance products, complete necessary forms, and make payments for coverage via an agent network, available on both monthly and annual terms.

In May 2023, Pan American Life Insurance Group, a prominent insurance and financial services provider based in the United States, completed the acquisition of Encova Life Insurance Company (formerly known as Encova Mutual Insurance Group). The undisclosed transaction has notably bolstered PALIC's U.S. life insurance arm, augmenting its revenue by an estimated $60 million, total assets by $600 million, and insurance premiums by $38 million. This strategic move significantly amplifies PALIC's operational scale, market reach, and diversification of its investment portfolio within the United States. Encova Life Insurance Company, the acquired entity, specializes in offering a range of microinsurance products, notably personal life insurance solutions, further strengthening PALIC's product offerings in this segment.

Major companies operating in the microinsurance market report are Berkshire Hathaway Inc., Ping An Insurance (Group) Company of China Ltd., Allianz SE, China Life Insurance Company Limited, Wells Fargo & Company, MetLife Inc., American International Group Inc., Liberty Mutual Holding Company Inc., Chubb Limited, Zurich Insurance Group, Aviva PLC, Aon PLC, SBI Life Insurance Company Ltd., ICICI Prudential Life Insurance Co. Ltd., Bharti AXA Life Insurance Company Ltd., Munich Re Group, National Insurance Company Limited, Tata AIA Life Insurance Company Limited, Banco do Nordeste Brasil S.A., HDFC Ergo General Insurance Company Limited, The Hollard Insurance Company Pty Ltd, Swiss Re Group, Bajaj Allianz Life Insurance Co. Ltd., Bandhan Bank Ltd., NSIA Insurance Ltd., CLIMBS Life and General Insurance Cooperative, Protecta Insurance New Zealand, MicroEnsure Holdings Limited, MetLife Services and Solutions LLC, afpgen.com.ph

Asia-Pacific was the largest region in the microinsurance market in 2023. The regions covered in the microinsurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the microinsurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The microinsurance market consists of revenues earned by entities by providing services such as claims processing, support, and risk assessment. The market value includes the value of related goods sold by the service provider or included within the service offering. The microinsurance market also includes sales of asset insurance, crop insurance, credit insurance, and endowment or pension microinsurance. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Microinsurance Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on microinsurance market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for microinsurance? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The microinsurance market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

Scope

Markets Covered:

• 1) By Product Type: Property Insurance; Health Insurance; Life Insurance; Index Insurance; Accidental Death And Disability Insurance; Other Product Type
• 2) By Model Type: Partner Agent Model; Full-Service Model; Provider Driven Model; Other Model Types
• 3) By Provider: Microinsurance (Commercially Viable); Microinsurance Through Aid Or Government Support
• 4) By End-User: Business; Personal
• Companies Mentioned: Berkshire Hathaway Inc.; Ping An Insurance (Group) Company of China Ltd.; Allianz SE; China Life Insurance Company Limited; Wells Fargo & Company
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.