Microinsurance sees $41.4b market potential

71.5% of APAC received insurance for property or loss-of-income.

Microinsurance products reached an estimated 330 million individuals in 36 countries across Africa, Asia, Latin America, and the Caribbean. Despite this broad reach, there remains a significant protection gap of 88.5%, indicating substantial untapped potential for insurance providers.

The immense market value of microinsurance in these 36 countries amounts to $41.4b, with only 15% of the market being served. 

Nearly 13 million individuals received coverage for property or loss-of-income risks through a microinsurance product, with 71.5% of that being people from Asia Pacific.

Whilst direct debit and standing orders are primary payment methods for 35% of products, cash remains significant (primary for 29%), notably in the region. 

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To address premium collection challenges, advancements in banking penetration, digitisation of value chain finance (especially for smallholder farmers), and increased adoption of mobile financial services are crucial for boosting microinsurance uptake.

The Landscape of Microinsurance Study by the Microinsurance Network (MiN), in collaboration with the United Nations Development Programme’s Insurance and Risk Finance Facility (UNDP IRFF), is derived from extensive primary research involving 294 insurers and covering 1,040 products across various sectors.

This highlights a significant opportunity for growth and underscores the critical role of microinsurance in building resilience and addressing poverty among marginalised communities.