Microinsurance Market to Grow with a CAGR of 8.05% Globally through 2028
The global credit cards market is a dynamic and
competitive industry, marked by increasing digitalization, rising consumer
demand, and evolving payment technologies, driving growth and innovation.
According to TechSci Research report, “Global Microinsurance
Market - Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2028”, the Global Microinsurance Market stood at USD 70.3 Billion
in 2022 and is anticipated to grow with a CAGR of 8.05% in the forecast period,
2024-2028. The Global
Microinsurance Market is characterized by growing awareness and demand for
financial protection, propelled by factors like the COVID-19 pandemic.
Technological advancements, including digital transformation and insurtech
innovations, are reshaping the market, making microinsurance more accessible
and customizable. Parametric insurance and bundled offerings with other
financial services are emerging trends. Climate-resilient products and
data-driven decision-making cater to specific risks, such as those faced by
smallholder farmers. Regulatory support and standardization efforts contribute
to market credibility. Despite these positive trends, challenges persist,
including low awareness, affordability, limited customization, sustainability,
and the need for regulatory support to reach vulnerable and remote populations.
The Global Microinsurance Market is witnessing robust
growth driven by several key factors that underscore its increasing relevance
and impact on financial inclusion and risk mitigation for underserved
populations. These drivers collectively contribute to the expansion and
dynamism of the microinsurance sector.
First and foremost, rising awareness of the importance
of insurance coverage is a significant driver. Events such as the COVID-19
pandemic have highlighted the financial vulnerabilities that individuals and
families can face in the absence of adequate insurance. This increased
awareness has prompted more people to seek insurance solutions to protect
themselves from unforeseen risks, fostering the growth of the microinsurance
market.
Technological advancements constitute another pivotal
driver of the microinsurance sector. The proliferation of digital technology,
especially the widespread adoption of mobile phones and internet connectivity
in developing regions, has transformed the way microinsurance products are
developed, distributed, and managed. Digital platforms enable insurers to reach
remote and previously inaccessible markets efficiently, reduce operational
costs, and enhance customer engagement. This technological evolution has
democratized access to insurance, making it more accessible to low-income and
marginalized communities.
Furthermore, the emergence of insurtech innovations is
reshaping the microinsurance landscape. Insurtech solutions leverage digital
platforms, mobile applications, and data analytics to streamline processes,
enhance customer experiences, and reduce operational costs for insurers. These
innovations facilitate policy purchases, premium payments, and claims
processing, making microinsurance more user-friendly and efficient.
Browse over xx market data Figures
spread through xxx Pages and an in-depth TOC on "Microinsurance Market”
Parametric insurance is a compelling driver that has
gained momentum within the microinsurance market. This approach, which triggers
payouts based on predefined parameters, such as weather conditions or crop
yields, offers a practical solution to the challenge of timely claims
settlement. By simplifying the claims process and eliminating the need for
complex loss assessments, parametric insurance ensures faster access to
financial assistance for policyholders, especially in regions prone to natural
disasters.
The integration of microinsurance with other financial
services is a growing trend and a key driver of market expansion. Microfinance
institutions, banks, and other financial service providers are collaborating
with microinsurers to create bundled offerings. These comprehensive packages
combine insurance coverage with other financial products such as microloans,
savings accounts, or investment options. By integrating insurance into broader
financial services, this approach enhances convenience and the overall value
proposition for customers, fostering financial inclusion.
Microinsurance providers are increasingly focusing on
developing climate-resilient and agriculture-focused products, another
significant driver. These products are designed to protect individuals and
communities vulnerable to the adverse effects of climate change and
fluctuations in agricultural yields. Index-based insurance for agriculture, for
instance, pays out based on predefined indices like rainfall or temperature,
simplifying the claims process and offering crucial financial support to
smallholder farmers.
Data-driven decision-making is becoming a central
driver in microinsurance operations. Insurers are leveraging data analytics and
artificial intelligence (AI) to gain deeper insights into customer needs,
assess risks more accurately, and tailor insurance products accordingly. This
data-driven approach enhances underwriting precision and allows for the
creation of more customized and affordable microinsurance solutions that cater
to the specific challenges faced by various customer segments.
Lastly, regulatory support and standardization efforts
are crucial drivers for the microinsurance market's growth. Governments and
regulatory bodies are recognizing the social and economic benefits of
microinsurance and are developing supportive frameworks to facilitate its
expansion. Simplified licensing procedures, microinsurance-specific
regulations, and incentives for insurers to offer coverage to underserved
populations are examples of regulatory support. Standardization efforts aim to
create uniform industry practices and enhance transparency, bolstering the
credibility of microinsurance providers.
In summary, the Global Microinsurance Market is
propelled by a confluence of drivers, including heightened awareness of
insurance's importance, technological advancements, insurtech innovations,
parametric insurance, integration with other financial services,
climate-resilient products, data-driven decision-making, and regulatory
support. These factors collectively contribute to the sector's growth and
enable it to fulfill its mission of providing affordable, accessible, and
relevant insurance solutions to underserved and vulnerable populations
worldwide.
Major companies operating in Global Microinsurance Market
are:
- The Hollard Insurance Company
- AFPGEN
- American International Group,
Inc.
- Bharti AXA Life Insurance
Company Ltd.
- SBI Life Insurance Company
Ltd.
- ICICI Prudential Life
Insurance Co. Ltd.
- Banco do Nordeste Brasil S.A.
- Climbs
- Allianz SE
- Bajaj Allianz Life Insurance
Co. Ltd.
Download Free Sample Report
Customers can also request for 10%
free customization on this report.
“The global microinsurance market is experiencing
significant growth and transformation, driven by factors like increasing
awareness, technological advancements, and regulatory support. This market is
characterized by the provision of affordable and accessible insurance solutions
to underserved populations, particularly in developing regions. Innovations
such as digital platforms and insurtech solutions are making insurance more
user-friendly and efficient. Parametric insurance is simplifying claims processing,
while the integration of microinsurance with other financial services enhances
its value proposition. Climate-resilient and agriculture-focused products
address specific risks, and data-driven decision-making allows for tailored and
affordable insurance solutions. This dynamic market is promoting financial
inclusion and resilience worldwide.” said Mr. Karan Chechi, Research Director
with TechSci Research, a research-based management consulting firm.
“Microinsurance Market – Global Industry Size,
Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Life
Insurance, Health Insurance, Property Insurance, Others), By Model Type
(Partner Agent Model, Full-Service Model), By Sales Channel (Direct Sales,
Financial Institutions, Digital Channels, Others), By Sales Channel (Business,
Personal), By Region, By Competition, 2018-2028”, has evaluated
the future growth potential of Global Microinsurance Market and provides
statistics & information on market size, structure and future market
growth. The report intends to provide cutting-edge market intelligence and help
decision makers take sound investment decisions. Besides, the report also
identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Global Microinsurance Market.
Contact
Mr. Ken Mathews
Techsci Research LLC
420 Lexington Avenue, Suite 300,
New York, United States-
10170
Tel: +13322586602
Email: [email protected]
Website: www.techsciresearch.com