Copying and distributing are prohibited without permission of the publisher
Microinsurance: The market of tomorrow
24 June 2010
Microinsurance is being touted as a wonder solution to help people in emerging markets afford insurance. It is less clear that insurance and reinsurance firms can make money from it, however.
Read more:
[microinsurance]
[LeapFrog Investments]
[International Labour Organisation]
[ILO]
[Microinsurance Innovation Facility]
[Tata-AIG]
The majority of the world’s population is excluded from fully participating in developed economies. With four billion people classified as low-income there is both the need and the opportunity for this to change.
In emerging markets, microinsurance can help to stabilise income levels, soften the blow of natural catastrophes, enable low-income people to take the risk of starting businesses, and make lenders more willing to lend to the poor.
Microinsurance is not an appropriate product for the destitute, but instead serves the needs of the working poor and the vulnerable non-poor. According to LeapFrog Investments, the world’s largest microinsurance investment fund, over one billion people are seeking, and are able, to pay for insurance. But the market is less than 9% penetrated.
Where it has been penetrated, microinsurance is being sold profitably over a range of product lines and is showing enormous potential for development and growth.
“There...
You must be logged in to view this page.
If you are already a registered user please log in here.
Alternatively, you can request a free trial or subscribe. For more information contact sdexter@euromoneyplc.com or call +44 (0) 20 7779 8223.
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
