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The microinsurance market is estimated to grow at a CAGR of 6.6% between 2022 and 2027, and the size of the market is forecasted to increase by USD 30.39 billion. The growth of the market depends on several factors, including the increasing demand for insurance policies, the increase in uncertain catastrophic events, and the increasing government regulations on mandatory insurance coverage in developing countries.
This report extensively covers market segmentation by product type (property insurance, health insurance, life insurance, index insurance, and others), type (microinsurance (commercially viable) and microinsurance through aid or government support), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Microinsurance Market Customer Landscape
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing demand for insurance policies is driving market growth. Buying an insurance policy is a key financial decision for many customers. Microinsurance firms are creating actuarial models and effective sales strategies. They are adopting more efficient pricing policies owing to a shift in demographics. The aging Baby Boomer population and the rising spending power of the Millennials are leading to growth opportunities for companies that sell medical, life, accident, and other insurance.
The demand for microinsurance products has increased, as they include security services and personalized financial services. Customers are looking for microinsurance policies that are cost-effective. Moreover, microinsurance firms are investing in innovative insurance products and services to tap the high growth potential in emerging markets. Thus, increasing awareness about the benefits of microinsurance policies will increase their demand during the forecast period.
The digitalization of the insurance industry is a key trend in the market. The insurance industry has adopted digitalization in recent years, which has led to significant changes in the market. Microinsurance companies are focusing on providing convenient, efficient, and personalized services to their clients. Digitalization has made it easier for customers to access and purchase insurance policies. Moreover, the advent of digitalization has led to the emergence of insurance companies that use advanced technologies to offer innovative and tailored microinsurance products and services.
With the adoption of digitization, customers can easily compare different microinsurance policies and select the one that suits their requirements. Digitalization has also helped microinsurance companies in collecting and analyzing large amounts of data. This enables them to understand the needs and preferences of their clients efficiently. Microinsurance companies can use AI to provide personalized and targeted policies and pricing, and risk management, which increases customer satisfaction. These factors are expected to drive the growth of the global microinsurance market during the forecast period.
Data privacy and security concerns are challenging market growth. Technological advances have led to the use of online and on-device data storage. The insurance industry relies on technology for various applications, including processing systems, online data, and electronic communication. However, this makes the data vulnerable to cyber theft and hacking. Any failure in cybersecurity or the misuse of data can result in huge financial losses.
The spread of COVID-19 worldwide compelled people to work remotely. Various organizations shifted to remote working models even after the removal of lockdown measures. This increased cybersecurity and data privacy risks for businesses. During the COVID-19 pandemic, there were several attempts by cyber criminals to exploit vulnerabilities. Such issues can cause a loss of revenue to vendors operating in the microinsurance market. These factors are expected to hamper the growth of the global microinsurance market during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BRAC International Holdings B.V. - The company offers microinsurance, which enables households to safeguard their finances and cope with immediate financial shocks in the event of the death of an earning family member. Under the microfinance segment, the company focuses on serving a large number of poor people with reliable access to cost-effective financial services by providing capital support to borrowers for creating livelihoods.
Hollard Insurance Group - The company offers microinsurance for the protection of low-income people, with affordable insurance products to help them cope with and recover from financial losses. The company also focuses on providing short-term life insurance as well as investment products to a diverse customer base, including individual consumers, commercial entities, and corporate clients.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the vendors. The analysis classifies vendors into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.
The property insurance segment will account for a significant share of market growth during the forecast period. Property insurance refers to a policy that provides financial compensation to owners or tenants of buildings and their contents in the event of damage or theft.
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The property insurance segment was valued at USD 20.36 billion in 2017 and continued to grow until 2021. Replacement cost coverage covers the costs of repairing or replacing damaged or lost property, regardless of depreciation or appreciation. Premiums for this type of coverage are based on replacement costs. Actual monetary value coverage covers replacement costs excluding depreciation. The extended replacement cost is above the coverage limit if the construction cost has increased and does not exceed 25% of the limit value. The limit is the maximum amount of benefit that an insurance company pays for in a specific situation or event. Limits also include age limits that are below or above the age at which an insurance company does not issue or continue a policy. These factors are expected to drive the growth of the segment during the forecast period.
The microinsurance (commercially viable) segment will account for a significant share of market growth during the forecast period. Microinsurance refers to insurance products that are designed to provide coverage for low-income individuals and families. These schemes generally offer coverage for risks such as illnesses, injuries, death, and property damage. Some of the commercially available microinsurance products include property insurance, health insurance, life insurance, and index insurance. Many microinsurance policies provide access to healthcare services. These factors will drive the growth of the segment during the forecast period.
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APAC is estimated to contribute 45% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
The market growth in APAC is attributed to various factors, such as the growth of the developing economies, low penetration of insurance, and an expanding middle-class population. The rise in disposable incomes is expected to fuel the demand for insurance products and innovations in the market. Advances in digital technology and the growing youth population are leading to high customer expectations. As a result, companies are offering innovative insurance products and digitally-enabled business models. Rapid urbanization is also driving market growth in the region. The demand for microinsurance products and services increases as people move from rural areas to cities. The aging population in the region is also contributing to market growth, as this population is more prone to illnesses and other health-related issues. This has increased demand for health insurance products, such as microinsurance. Such factors will drive the growth of the regional market during the forecast period.
The outbreak of the COVID-19 pandemic in 2020 had an adverse impact on several countries, with the imposition of stringent lockdowns to contain the spread of the disease. However, the pandemic led to an increase in the penetration of microinsurance through end-to-end digital technology for transparency, accountability, and monitoring. Therefore, the increasing digitization of the insurance sector, including microinsurance, is expected to spur the growth of the microinsurance market during the forecast period.
The microinsurance market report forecasts market growth by revenue at global, regional, & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Microinsurance Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.6% |
Market growth 2023-2027 |
USD 30.39 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.25 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 45% |
Key countries |
US, Mexico, China, Japan, and India |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accion International, AFPGEN, Ageas Federal Life Insurance, AIA Group Ltd., AL BARAKAH MICROFINANCE BANK, Allianz SE, ASA International Group plc, Banco Bilbao Vizcaya Argentaria SA, BRAC International Holdings B.V., Edelweiss Financial Services Ltd., Gojo and Company Inc., HDFC Bank Ltd., Hollard Insurance Group, ICICI Bank Ltd., Life Insurance Corp. of India, Micro Insurance, Milliman Inc., Oikocredit International, Pramerica Life Insurance Ltd., and State Bank of India |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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