Microinsurance study unveils global risk insights

In a world fraught with uncertainties, understanding the landscape of microinsurance has become paramount.

The Microinsurance Network (MiN), in partnership with the United Nations Development Programme’s Insurance and Risk Finance Facility (UNDP IRFF), presents the latest benchmark ‘Landscape of Microinsurance Study’, offering insights into this evolving sector.

Published annually, this report serves as a tool to comprehend global risks, from climate change to food insecurity and social instability. Drawing from data collected in 2022, it sheds light on emerging trends aimed at bridging the protection gap for vulnerable populations worldwide.

What are the experts saying?

Lorenzo Chan, president and CEO of Pioneer Life Inc and chair of the Microinsurance Network Board, emphasises the role of micro insurance in mitigating risks for marginalised communities. He states, “Microinsurance is an affordable safety net, helping individuals manage losses from illness, death, loss of livelihoods, or natural disasters.”

The 2023 report encompasses insights from 294 insurers covering 1,040 products across diverse sectors, extending coverage to an estimated 330 million individuals in 36 countries. However, a stark reality emerges—the protection gap stands at 88.5%, leaving the vast majority exposed to unforeseen risks.

Jan Kellet, special advisor at UNDP IRFF, underscores the urgency of bridging this gap, especially in low-income communities. He states, “Almost 9 out of 10 people in low-income communities lack the formal safety net provided by insurance, risking falling back into poverty with any unexpected shock.”

Marc Bichler, ambassador of Luxembourg to the United Nations Office in Geneva, acknowledges the role of studies like the Landscape of Microinsurance in shaping global resilience efforts. He remarks, “Inclusive insurance will become critical in building global resilience, especially in light of accelerating climate challenges and their impacts on vulnerable populations.”

The report reveals a market value of USD 41.4 billion across the surveyed countries, with only 15% of the market being reached. Despite this, microinsurance presents significant potential, urging insurers and policymakers to seize opportunities for growth.

Emma Cockings Emma is a content editor for Claims Media. Emma is a experienced writer with a background in client-centric personal injury for a major firm. She has attended and reported on multiple brokerage events throughout her career.