Microinsurance expands to cover 344m globally in 2024

The Philippines was amongst the top countries with a high penetration rate.

Microinsurance’s role to aid low-income families expanded in 2024, with 344 million people across 37 countries being covered by microinsurance, up 3.9% 2023, according to the Microinsurance Network’s (MiN) latest report.

Written premiums reached $6.2b, compared to $5.8b the previous year, The Landscape of Microinsurance 2024 report revealed.

Whilst life and funeral insurance remain dominant, coverage is expanding to include climate risks, with 112 products covering over 42 million people. 

Property and income insurance products have nearly doubled in recent years, and new personal accident and agriculture insurance products have been introduced.  

Despite this growth, the protection gap remains significant. 

The estimated microinsurance market in the studied countries is nearly 3 billion people, with a potential premium value of $41b. 

The current coverage represents just 12% of the target population and 15% of the market's estimated value, highlighting both an urgent need for coverage expansion and a business opportunity for insurers.  

Governments, donors, and regulators are increasingly supporting the microinsurance market. 

Subsidies play a crucial role in expanding coverage, particularly in agriculture insurance, where 58% of products receive financial support. 

Regulations are also shaping the industry, with 40 countries implementing microinsurance-specific policies and another 16 developing frameworks. 

Amongst the top five countries with the highest microinsurance penetration, four—Peru, the Philippines, Zambia, and Zimbabwe—have dedicated regulations, underscoring the role of regulatory frameworks in market growth.  

Distribution and payment channels remain key to expanding access. 

Whilst financial institutions, microfinance groups, and brokers continue to dominate distribution, digital platforms and mobile network operators are increasing their presence. 

In Africa, mobile network operators serve 2.5 million people, whilst new partnerships with government networks, public service providers, and mass-market distributors are emerging.  

The study highlights that microinsurance products typically see significant growth after three to four years, requiring long-term investment. 

Mature products generate close to $500,000 in premiums, and claims ratios improve over time, with older products showing a median claims ratio of 25% compared to 18% for newer ones. 

Larger schemes covering over 500,000 people report a median claims ratio of 28%, whilst smaller ones remain at 9%.  

Improving gender data collection is critical, as women are disproportionately affected by risks such as climate change and health crises. 

However, limited gender-specific data exists. The study suggests that distribution channels influence the proportion of women covered, and insurers must develop targeted strategies to reach underserved women, particularly in property and income insurance.