Global Microinsurance Market Forecast, Trend Analysis And Competition Tracking - Market Insights: 2015 – 2031

Global Microinsurance Market Overview

The global microinsurance market was valued at US$ XXX million in 2020, and is projected to grow at a CAGR of X.X%.

Microinsurance is the practice of providing smaller amounts of financial protection to individuals who are unlikely to be able to afford insurance through traditional insurance plans. Its plans are often more affordable, and offer greater access to financial protection, than what would be offered through other forms of insurance. Its plans can take various forms including community-based natural disasters relief programs, safety net micro-banking programs, and individual health care safety nets.

It is just what the name implies, insurance for small risks. Although microinsurance can be applied to any type of risk, it is most common in the case of personal losses. It was originally created in response to the GFC (Global Financial Crisis) when banks were no longer able to offer coverage for individuals after they lost their jobs. It proved to be a popular option for those who were unable to get enough coverage through their employer.

The poor often have repetitive exposures to hazards, such as floods or fires. With limitations on their health expenditures, the poor are not able to insure themselves against these risks. Microinsurance is a new concept where small payments are made to cover small risks. Insurance companies can cover larger risks that arise from natural disasters by spreading the risk across many small participants. It is hoped that this will provide more security to those who need it most.

A new study released by the World Bank, International Monetary Fund, and the United Nations Development Program has found that microinsurance can reduce poverty. The study explains that microinsurance is able to provide protection against unforeseen risks for people who are less likely to have access to health care.

The global microinsurance market is segregated into product types, provider, model types, and regions. On the basis of product type, the global microinsurance market is sub-segmented into property insurance, health insurance, life insurance, index insurance, accidental death and disability insurance, and other product types. With respect to provider, the global microinsurance market is distributed into microinsurance (commercially viable), and microinsurance through aid/ government support. On the basis of model type, the global microinsurance market is sub-segmented into partner agent type, full-service model, provider driven model, community-based/ mutual model, and other model types. On the basis of region, the global microinsurance market is sub-segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

The Increase In The Growth Of The Demand For Insurance Products Across The Globe

The demand for insurance products around the world has increased in recent decades. Ironically, this rise in demand is not due to greater risk; rather, it is a consequence of economic development and growing aspirations. There are many reasons why people buy insurance: to protect against loss of life, property or income; to protect against events that could be catastrophic in cost and effect; and because these products and services can offer valuable protection when people cannot afford them out-of-pocket.

Various Innovative Models Like Peer-To-Peer Models, Consumer Friendly Insurance Models To Influence The Market Growth

Some innovative models of insurance have been introduced in recent times with the aim to improve the efficiency and affordability. One such model is a peer-to-peer model, which allows people on the same platform to give and receive small donations from each other. In this way, more people can afford to insure themselves without having to face a high enough risk so as to qualify for traditional insurance.

An Increase In The Transparency Between The Service Provider And The Insurance Taker

In a cost-sharing healthcare system, the transparency between the service provider and the insurance taker is increased. This enables people to make educated decisions about their health or to seek information from other sources that help them understand their health options. With this increased transparency, those who need services can do so without fear of being discriminated against. They can also save money because they will not be paying for insurance and because they will be able to see what services qualify for lower rates.

Digital Availability Of Products To Consumers Have Helped To Create Opportunities For Microinsurance Market

Digital availability of products to consumers have helped to create opportunities for microinsurance through companies like Intact. Intact is a Canadian company that pioneered the use of large databases, credit cards, and mobile phones to deliver easily-accessible insurance products to the underserved population in emerging markets. By using these technologies, they are able to provide cheaper insurance premiums with more tailored coverage for those who are not covered by traditional insurers.

Cost Constraints And The Stringent Government Regulations

In addition to the stringent government regulations, cost constraints are a vital factor in restraining the microinsurance industry. This is because of their restrictions on premium rates. For example, governments may cap premiums at below actuarially sound levels, which means carriers cannot charge enough to cover the losses they have already had, let alone future losses. As a result, it often becomes impossible for new players to enter the market because they can't break even with such low premiums.

Impact of COVID-19 on Global Microinsurance Market

With the progression of COVID-19 worldwide and compulsory a lock-out at gov't facilities, there is an ongoing drop in healthcare income. Aside from cities, the impacts of large groups of COVID-19 were devastating for businesses in the health sector. Leading players are actively considering their proposed changes in light of the altered health care landscape. The long-term effects of the Coronavirus outbreak are predicted to be substantial for the healthcare industry. Countries and key players were pushed to make essential alterations in healthcare in order to stop the pandemic's progression.

Asia Pacific Is Expected To Dominate The Global Market

The global microinsurance market is segmented into into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

Markets in the Asia Pacific region are anticipated to account for the largest share owing to the improving national economies, increasing low-income population, and regulatory and law-making development in this region.

Attributes	Details
Key Segments Covered in Global Microinsurance Market by Product Type	Property Insurance
	Health Insurance
	Life Insurance
	Index Insurance
	Accidental Death and Disability Insurance
	Other Product Types
Key Segments Covered in Global Microinsurance Market by Provider	Microinsurance (Commercially Viable)
	Microinsurance through Aid/ Government Support
Key Segments Covered in Global Microinsurance Market by Model Type	Partner Agent Type
	Full-Service Model
	Provider Driven Model
	Community-Based/ Mutual Model
	Other Model Types

Key Players Of The Global Microinsurance Market Include

• Bandhan Financial Services Limited
• HDFC ERGO General Insurance Company Limited
• Hollard Group
• ICICI Bank Limited
• MetLife Inc.
• MicroEnsure Holding Ltd
• NSIA Insurance
• Protecta
• SAC Banco do Nordeste
• Standard Chartered plc
• Other key Players

Report Scope

• Forecast Period: 2022-2031
• Actual Year: 2021
• Historical Data Available for: 2015-2020