In a world of increasing complexity and risk, families are on the frontline of hazard and shock, and insurance can and must play a critical role in their financial resilience.
The role of insurance in providing financial reliance and inclusion to those most in need of it forms the primary focus of the Landscape of Microinsurance Study for 2022, which has recently been published by the non-profit association, the Microinsurance Network (MiN).
Published annually since 2010, the research and insights series seeks to provide a unique global benchmark in tracking the uptake of inclusive insurance products and services, along with insights into emerging trends connected with closing the people protection gap.
This latest study considering 2022 appears to be the most comprehensive in the series to date, with 253 insurance providers reporting on 935 products in 34 countries across Africa, Asia, Latin America and the Caribbean.
With an estimated value of $61.8billion, the microinsurance market in these countries is one of opportunity; covering health, life and accident, agriculture and aquaculture, in addition to livestock, property and income.
In this, MiN paints an extensive picture of the microinsurance landscape, detailing the market size and evolution, premiums, product development, social performance, reinsurance and claims.
Setting the standard for microinsurance worldwide
Reflecting on its latest publication, Katharine Pulvermacher, MiN executive director, says the series is considered “a unique benchmark for tracking insurance uptake in emerging countries,” evidenced by it becoming an invaluable reference for all stakeholders in the inclusive insurance arena.
In this respect, the series provides market intelligence to directly inform stakeholders’ strategic decisions to support inclusive insurance initiatives, including microinsurance programmes in developing countries.
“To date,” continues Pulvermacher, “the studies have proved highly influential, highlighting barriers, regulations, trends and opportunities in emerging markets,” which she cites as “vital information which helps drive the development of suitable microinsurance products.”
“With insurance activities on the rise in developing countries and growing interest from a broader range of stakeholders, providing an overview of the industry and dynamics of any given region is crucial in helping drive growth and engagement,” adds Pulvermacher.
“The reports not only help inform policy and business decisions, but they also help determine product design and provide market entry for the private sector as well.
“The microinsurance market in the countries covered in the report is one of massive opportunity and the Landscape Series is targeted at encouraging progression in an effort to ensure the widespread delivery and uptake of microinsurance solutions to those who need it most by helping to create greater financial inclusion and security – and ultimately, to close the people protection gap,” she concludes.
Achieving financial inclusion
The United Nations Development Programme (UNDP) supported the MiN by sponsoring its latest study, notably for how microinsurance activity contributes to the UN Sustainable Development Goals as well as meeting the global re/insurance sector’s environmental, social and governance (ESG) responsibilities.
In regard to the study, Jan Kellett, team and corporate lead of the UNDP’s insurance and risk finance facility, explains that in countries all over the world, “there is often inadequate information and data on which to develop the most suitable insurance products and services that are more likely to be bought by customers because they meet their needs, are easily accessible and are, crucially, affordable.”
“By providing critical market knowledge and insights,” continues Kellett, “the Landscape Study assists and encourages insurers and other key stakeholders to develop products and services which help to create greater financial security for people and communities around the world.”
He adds: “The Landscape series is forging new ground by helping policymakers base financial inclusion decisions on accurate information about who in the world’s population is excluded and what can be done to address this urgent global issue.”
Image and article originally from thefintechtimes.com. Read the original article here.