Emerging market remain underinsured as 1.3 billion are outside formal financing

However, medical insurance has the highest uptake across all markets.

Households in emerging markets remain under-insured and exposed to health, climate, and income shocks, despite wider access to digital payments, savings, and credit, according to a new report by the Geneva Association. 

The study, Insurance as a Core Element of Financial Inclusion in Emerging Economies, says more than 1.3 billion adults worldwide are still outside the formal financial system, with many others lacking adequate insurance cover.

Based on a survey in Brazil, China, India, Mexico, Morocco, South Africa, and Türkiye, the report finds that 70% to 90% of respondents see insurance as useful, yet large protection gaps remain in property, disability, and savings-type life insurance. 

Medical insurance has the highest uptake across all markets, as healthcare costs are the top financial concern for most households. 

Affordability is cited as the main reason for not buying coverage. China and India show the highest insurance penetration, supported by digital platforms and public insurance schemes.

The Geneva Association said many uninsured respondents believe they could access insurance if needed, but cost, product relevance, and trust remain barriers. 

The group said insurers need to offer simpler and lower-cost products, whilst governments should include insurance in national financial inclusion programmes and support demand through subsidies and financial education.