Microinsurance Market Analysis

Microinsurance Market Overview

Microinsurance Market Size was valued at USD 85.9 Billion in 2022. The Microinsurance market is projected to grow from USD 91.2 Billion in 2023 to USD 147.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.20% during the forecast period (2023 - 2032). A growing number of microinsurance start-ups entering the market with creative microinsurance plans, as well as the introduction of new and creative marketing and sales channels for microinsurance, are the key market drivers enhancing the market growth.

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Microinsurance Market Trends

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  The emergence of new and innovative channels to market and sell microinsurance is driving the market growth

  
  

The advent of fresh and inventive avenues for marketing and selling microinsurance is what is fueling the market's expansion. As the insurance sector undergoes a digital transformation, insurers are able to work with insurtech firms and more effectively market and sell microinsurance products. A digital ecosystem that may digitally create and provide insurance to low-income populations is also being formed by digital platforms that hire gig workers or remittance platforms for migrant workers. Additionally, the industry is anticipated to develop as more microinsurance start-ups enter the market with creative microinsurance products. For instance, Palawan Pawnshop, a well-known pawnshop chain in the Philippines, and PNB General Insurers Company, Incorporated (PNBGen) collaborated in April 2021. This collaboration aims to provide two reasonably priced microinsurance products across the latter's extensive network of more than 3,000 stores dispersed across the nation. ProtekTODO Premium Pamilya Max 300, which offers comprehensive personal accident coverage for the entire family for a yearly premium of PHP 300 (USD 5.47), and ProtekTODO Eskwela Max, a student accident insurance policy with yearly premiums of either PHP 50 (USD 0.91) or PHP 30 (USD 0.54), are two of the products available.

Microinsurance companies are rapidly experimenting with integrating AI and ML to enhance operations and provide better customer service. By utilising algorithms to analyse and categorise incoming claims based on different criteria, such as the type of claim, the severity of the claim, and the policy coverage, AI and ML can automate the claims processing process. Real-time processing of claims can drastically cut down on the time and expense associated with manual processing. In addition, by examining patterns and spotting anomalies in the data, AI and ML have been utilised to find fraudulent claims. This aids microinsurance companies in reducing losses and preventing fraud, which eventually lowers consumer premiums.

To safeguard customers and service providers, this industry must adhere to regulations. Providers of microinsurance must abide by legal and ethical standards to guarantee the reliability of their services. Microinsurance solutions are made to defend the interests of customers, especially those with low means, thanks to regulatory compliance. To stop the abuse of the disadvantaged population, regulatory organisations set minimal requirements for the creation, pricing, and distribution of microinsurance products. For example, Vietnam's Insurance Business Law came into force on January 1, 2023. It enables cooperative organisations to provide microinsurance products with less onerous monetary, individual, and professional criteria than those imposed by traditional insurance firms. Thus, driving the Microinsurance market revenue.

Microinsurance Market Segment Insights

Microinsurance Type Insights

The Microinsurance Market segmentation, based on type, includes lifetime coverage and term insurance. Term insurance segment dominated the global market in 2022. Companies can reach many low-income people and families with term insurance who might not otherwise have access to regular insurance products.

Microinsurance Age Group Insights

The Microinsurance Market segmentation, based on age group, includes minor, adult, and senior citizens. The adult segment dominated the global market in 2022. Due to their numerous advantages, adult consumers are increasingly adopting microinsurance products, which drives segment growth.

Microinsurance Product Insights

The Microinsurance Market segmentation, based on product, includes property insurance, health insurance, life insurance, index insurance, accidental death and disability insurance, and others. Life insurance segment dominated the global market in 2022. The combination of lower risk, higher demand, streamlined underwriting, and cheaper premiums has made life insurance the market leader on a global scale.

Microinsurance Provider Insights

The Microinsurance Market segmentation, based on provider, includes microinsurance (commercially viable) and microinsurance through aid/government support. Microinsurance (commercially viable) segment dominated the Microinsurance Market in 2022. Providers of commercially successful microinsurance are putting their efforts into creating new solutions that are specifically suited to the requirements of low-income people and communities. Among these products are weather index-based insurance, which covers crop losses brought on by unfavourable weather, and health insurance, which covers particular illnesses.

Microinsurance Distribution Channel Insights

The Microinsurance Market segmentation, based on distribution channel, includes direct sales, financial institutions, e-commerce, hospitals, clinics, and others. Financial institution segment dominated the Microinsurance Market in 2022. The majority of microinsurance is distributed through financial institutions, with banks that focus on micro-enterprise solutions serving a sizable portion of the market.

Microinsurance Model Insights

The Microinsurance Market segmentation, based on model, includes partner agent model, full-service model, provider driven model, community-based/mutual model, and others. Partner agent model segment dominated the Microinsurance Market in 2022. Working closely with partner agents that have a thorough understanding of the needs and preferences of their consumers can be advantageous for microinsurance providers. By working together, insurance companies can tailor their goods and services to the distinct needs of the regional market, increasing the appeal of their offerings to potential clients.

Figure 1: Microinsurance Market, by Model, 2022 & 2032 (USD Billion)

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Microinsurance Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Microinsurance Market dominated this market in 2022 (45.80%). The development of digital platforms and mobile technology has made it simpler and more affordable to provide consumers with microinsurance solutions. Due to this, there are now more companies on the market, including as startups in the insurtech space that use technology to target underserved demographics. A solid environment for microinsurance providers is provided by North America's established regulatory framework for insurance products. Further, the U.S. Microinsurance market held the largest market share, and the Canada Microinsurance market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: MICROINSURANCE MARKET SHARE BY REGION 2022 (USD Billion)

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Europe Microinsurance market accounted for the healthy market share in 2022. One of the key drivers of market expansion in the Europe area is the rising demand for microinsurance goods and services. Additionally, a number of non-governmental organisations, microfinance organisations, and funders are making investments in microinsurance throughout the region. Further, the German Microinsurance market held the largest market share, and the U.K Microinsurance market was the fastest growing market in the European region

The Asia Pacific Microinsurance market is expected to register significant growth from 2023 to 2032. The availability of a sizable pool of disadvantaged persons, low insurance penetration, a favourable legislative environment, and technology innovation are to blame for this. In the Asia Pacific area, numerous countries have put laws into place to facilitate the growth of microinsurance projects. For instance, microinsurance providers are not subject to certain regulatory criteria like capitalization and solvency restrictions in some nations, such the Philippines and Indonesia. For instance, the Microinsurance Act of 2013 in the Philippines creates a more straightforward regulatory framework for microinsurance. Moreover, China’s Microinsurance market held the largest market share, and the Indian Microinsurance market was the fastest growing market in the Asia-Pacific region.

Microinsurance Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Microinsurance market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Microinsurance industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Microinsurance industry to benefit clients and increase the market sector. In recent years, the Microinsurance industry has offered some of the most significant advantages to medicine. Major players in the Microinsurance market, including HDFC Ergo General Insurance Company Limited, Hollard, MicroEnsure Holdings Limited, National Insurance Commission, Standard, Chartered Bank, Wells Fargo, SAC Banco do Nordeste, MetLife Services and Solutions, LLC, Bandhan Bank, ICICI Bank, and Tata AIA Life, are attempting to increase market demand by investing in research and development operations.

Holding company MicroEnsure Holding Ltd. does business. Through its subsidiaries, the company provides an inexpensive and suitable selection of insurance products, including life, disability, health, property, weather index, and redundancy, to those living in poverty throughout the developing globe. In the United Kingdom, MicroEnsure has operations in Cheltenham. In October 2021, Chamasure, a Nairobi-based insurance platform that intends to offer insurance solutions for underprivileged areas, and MicroEnsure, a Micro Insurance Company (MIC) affiliate, forged a strategic relationship. Through this collaboration, MicroEnsure was able to provide complete support for the enrollment and claims settlement procedures and provide digital insurance services to people in underserved communities across Kenya.

Microinsurance services are offered by CARD Pioneer Microinsurance Inc. (CMPI), a company situated in Makati City, Philippines. The business creates specialised microinsurance solutions that allow customers to obtain a sizeable quantity of life and property insurance coverage at costs they can afford. In order to increase access to insurance products and services, particularly for small farmers in the Philippines, CARD Pioneer Microinsurance Inc. (CMPI) and the Philippine Crop Insurance Corp. (PCIC), a government-owned organisation, joined up in February 2022.

Key Companies in the Microinsurance market include

• HDFC Ergo General Insurance Company Limited


• Hollard


• MicroEnsure Holdings Limited


• National Insurance Commission


• Standard Chartered Bank


• Wells Fargo


• SAC Banco do Nordeste


• MetLife Services and Solutions, LLC


• Bandhan Bank


• ICICI Bank


• Tata AIA Life

Microinsurance Industry Developments

February 2022: A digital microinsurance portal that clients may use to purchase and manage their insurance plans has been launched by the Kenyan government.

Microinsurance Market Segmentation

Microinsurance Type Outlook

• Lifetime Coverage


• Term Insurance

Microinsurance Age Group Outlook

• Minor


• Adult


• Senior Citizens

Microinsurance Product Outlook

• Property Insurance


• Health Insurance


• Life Insurance


• Index Insurance


• Accidental Death and Disability Insurance


• Others

Microinsurance Provider Outlook

• Microinsurance (Commercially Viable)


• Microinsurance Through Aid/Government Support

Microinsurance Provider Outlook

• Direct Sales


• Financial Institutions


• E-Commerce


• Hospitals


• Clinics


• Others

Microinsurance Model Outlook

• Partner Agent Model


• Full-Service Model


• Provider Driven Model


• Community-Based/Mutual Model


• Others

Microinsurance Regional Outlook

• North America
  
  
  
  • US.
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America