The Landscape of Microinsurance 2021

Author: Alice Merry for the Microinsurance Network

Date: October 2021

The Landscape of Microinsurance 2021 found that between 179 and 377 million people were covered by a microinsurance product in the 30 countries covered. This is estimated to represent between 6% and 14% of the target population of the countries studied. 

COVID-19 had an important impact on insurers. The pandemic heightened awareness of risk and, in some cases, increased customers’ interest in acquiring insurance, particularly health insurance. At the same time, with customers’ income stretched, many were simply unable to pay for insurance or for services with bundled insurance cover. As well as demand restraints, insurers and their partners faced serious operational challenges, including adapting to staff working from home and finding alternatives to face-to-face interactions with customers.

This year, health microinsurance reached 104 million people globally and became, for the first time, the largest product line in both Africa and Asia. The growth of health microinsurance has been an important trend for several years. Whereas life insurance was previously the “starter” product for insurance providers looking to enter the low-income market, simple health products have now taken over in many countries as the first choice for insurers and FinTechs launching new microinsurance schemes. The appeal of health insurance has only increased as COVID-19 has raised consumers’ awareness of health risks.

Women make up a median of 45% of microinsurance policyholders across the three regions, lower than the 50% recorded in the previous Landscape Study. This is related to the changes in principal product lines, as credit life insurance, with its longstanding focus on female clients, no longer dominates outreach in the data received.

Claims ratios dropped from a median of 23% in 2019 to 15% in 2020. In some cases, customers have struggled to submit claims during the pandemic and, in some lines of business, underlying claims experience declined, with fewer workplace accidents and difficulties accessing medical care, for example.

The full report is available on the Microinsurance Network website here.