Global microinsurance cover grows, but 88% protection gap remains, says new report 

Despite strong growth in the microinsurance sector, nearly 90% of the world’s population remains without financial protection against escalating risks such as climate change, health emergencies, natural disasters and conflict.

That’s according to a new report launched by the Microinsurance Network (MiN) in partnership with the United Nations Development Programme (UNDP). 

‘The Landscape of Microinsurance 2024’ is the most comprehensive analysis of microinsurance markets to date, based on data from 294 insurers across 37 countries in Africa, Latin America and the Caribbean, and Asia and the Pacific. The report, supported by a range of public and private sector partners, reveals that microinsurance products covered 344 million people globally in 2023 – a 70% increase over the past three years. 

Yet, the report highlights a stark protection gap: only 12% of the estimated target market of 3 billion low- and middle-income people are currently insured. This leaves a $35 billion untapped premium opportunity, signalling both an urgent development challenge and a growth opportunity for insurers. 

The products analysed in the report generated $6.2 billion in written premiums in 2023 and were focused on building financial resilience in the face of growing systemic risks. Microinsurance is an increasingly vital tool for low-income populations, helping them navigate the financial fallout from economic shocks, extreme weather events, and health-related uncertainties. 

Despite some progress, the report highlights a lack of gender-disaggregated data. Where data is available, women remain underserved – particularly in property and income insurance. MiN and UNDP call for insurers to adopt a gender lens in product design and distribution strategies, alongside improved data collection. 

The report calls on insurers, policymakers, and development stakeholders to take concerted action. Further key recommendations include improving access, ensuring affordability, and supporting long-term market sustainability. 

Backed by organisations such as Luxembourg’s Ministry of Foreign and European Affairs, AXA EssentiALL, Munich Re Foundation, Swiss Re Foundation, and AON Philippines, the findings aim to inform strategies that close the protection gap and build more inclusive insurance ecosystems worldwide. 

Image credit: © Andrey X. via Canva 

Josie Geistfeld Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.geistfeld@barkerbrooks.co.uk