Microinsurance Market Size To Reach $121.18 Billion By 2030

Microinsurance Market Growth & Trends

The global microinsurance market size is expected to reach USD 121.18 billion by 2030, growing at a CAGR of 6.7% from 2023 to 2030, according to a new report by Grand View Research, Inc. The industry growth can be attributed to various factors, such as increasing disposable income, technological advancements in insurance and mobile technology, and the expansion of high-speed mobile networks worldwide. Companies, such as Bima and MicroEnsure, utilize mobile technology and collaborate with top telecommunication firms to provide microinsurance to low-income people. For instance, in October 2021, MicroEnsure partnered with Jazz Business, a leading B2B solutions provider, to offer tailored insurance products to its corporate customers at preferential rates.

Blockchain technology is being utilized to reduce high insurance premiums, simplify the claims process, facilitate the development of specialized coverage, and support people residing in low-income and disaster-prone areas. Various microinsurance providers worldwide offer microinsurance products and services based on blockchain technology. For instance, Blocksure Ltd., a software company based in London, UK, provides Blocksure OS, a blockchain-based insurance platform for low-income customers in developing countries. Microinsurance providers are exploring new business models like peer-to-peer insurance and on-demand coverage. These models leverage technology to provide customers with more personalized and flexible insurance options while reducing costs and increasing efficiency.

Microinsurance providers are embracing technology, sustainability, and innovation to serve their customers better and positively impact society. The COVID-19 pandemic highlighted the importance of digital transformation. The pandemic has accelerated the shift toward digital distribution channels in this market. Digital channels offer customers the convenience of buying insurance products from the comfort of their own homes without the need for face-to-face interactions. In addition, digital channels can be customized to meet the specific needs of different customer segments, offering a more personalized experience. The microinsurance (commercially viable) segment dominated the market in 2022. The commercially viable microinsurance market has been expanding rapidly in recent years, with several developments helping drive growth & improve product accessibility.

The microinsurance (commercially viable) segment is also more likely to have access to formal financial services, which makes it easier for insurance companies to distribute their products and collect premiums. This allows insurance companies to reduce administrative costs and increase efficiency. The Asia Pacific region dominated the industry in 2022. The region has seen significant economic growth in recent years due to increasing disposable income among low-income households. This has resulted in a growing demand for insurance products catering to the low-income population segment. In addition, the region has a high mobile phone penetration rate, facilitating the growth of mobile-based microinsurance products.

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Microinsurance Market Report Highlights

• The partner-agent model segment dominated the market in 2022. In this model, microinsurance providers partner with local agents to sell their products to low-income individuals and communities. Local agents act as intermediaries between the provider and customers and are responsible for marketing, sales, and customer services. This approach is especially advantageous for the market, enabling providers to leverage these agents’ established networks and relationships to reach underserved populations

• The life insurance segment dominated the market in 2022. Low-income households face a greater risk of financial distress due to their limited financial resources, making life insurance essential. The market has responded to this need by developing affordable and accessible life insurance products tailored to low-income customers' specific needs and preferences. These products often have low premiums and simplified underwriting processes, making them more accessible to customers who may not qualify for traditional life insurance

• The financial institutions segment dominated the market in 2022. Financial institutions have the expertise to design and market insurance products that meet low-income customers' needs and preferences. They also benefit from cross-selling opportunities by offering their existing customer base microinsurance products

• The business segment dominated the industry in 2022. Microinsurance can provide Small & Medium-sized Enterprises (SMEs) a way to attract and retain employees by offering them insurance coverage. Offering employees access to insurance coverage improves their financial security and well-being. This, in turn, helps improve employee retention and productivity

Microinsurance Market Segmentation

Grand View Research has segmented the global microinsurance market on the basis of provider, model type, product type, distribution channel, end-use, and region:

Microinsurance Provider Outlook (Revenue, USD Billion, 2017 - 2030)

• Microinsurance (Commercially Viable)

• Microinsurance Through Aid/Government Support

Microinsurance Model Type Outlook (Revenue, USD Billion, 2017 - 2030)

• Partner Agent Model

• Full-Service Model

• Provider Driven Model

• Others

Microinsurance Product Type Outlook (Revenue, USD Billion, 2017 - 2030)

• Life Insurance

• Health Insurance

• Property Insurance

• Others

Microinsurance Distribution Channel Outlook (Revenue, USD Billion, 2017 - 2030)

• Direct Sales

• Financial Institutions

• Digital Channels

• Others

Microinsurance End-Use Outlook (Revenue, USD Billion, 2017 - 2030)

• Business

• Personal

Microinsurance Regional Outlook (Revenue, USD Billion, 2017 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • UK

  • Germany

  • France

  • Italy

• Asia Pacific

  • China

  • India

  • South Korea

  • Japan

  • Philippines

  • Australia

• Latin America

  • Brazil

  • Mexico

• Middle East & Africa

  • Kingdom of Saudi Arabia (KSA)

  • UAE

  • South Africa

List of Key Players in Microinsurance Market

• The Hollard Insurance Company

• afpgen.com.ph

• American International Group, Inc.

• Bharti AXA Life Insurance Company Limited

• SBI Life Insurance Company Limited

• ICICI Prudential Life Insurance Co. Ltd.

• Banco do Nordeste Brasil S.A.

• Climbs

• Allianz SE

• Bajaj Allianz Life Insurance Co. Ltd.