Health offers new lifeline to inclusive insurance market
A global report into microinsurance reveals a post-pandemic surge in health insurance is key to greater provision in emerging economies
A significant surge in the global demand for health insurance across the world’s emerging economies offers ‘the most significant market and ESG opportunity in decades’ for insurers, according to the international body representing the global microinsurance sector – the Microinsurance Network.
According to the findings of the organisation’s Landscape of Microinsurance Study 2021, the Covid-19 pandemic has led to increased demand for health insurance for low-income communities, with more than 104 million people now covered globally, in a surge that sees the opportunity for health provision eclipsing the former leading services of life and personal accident insurance.
As a result of the report, which features insight and data from more than 200 insurers across Africa, Asia and Latin America and the Caribbean, insurance providers are being urged to review their inclusive insurance offerings in order to tap into the commercial opportunities presented, whilst supporting some of the world’s most vulnerable communities and economies with enhanced protection through insurance.
Boost for health insurance market but more opportunities remain
The report shows up to 377 million people are now covered by a microinsurance product in the 30 countries included in the data, with health by far the most popular product, followed by personal accident (36 million), life (29 million) and credit life/loan protection (18 million). However, these figures still represent only five per cent of the global population, showing the opportunities for insurers across the world.
The growth in health microinsurance has also been supported by a range of new services to support customers’ changing needs and ability to access and pay for products, including health education and telemedicine. There has also been a rise in digital platforms, such as ride-hailing applications and e-commerce platforms, delivering health insurance and reaching millions of new clients with coverage which can be bundled with existing services.
Katharine Pulvermacher, executive director of the Microinsurance Network, said: “The report shows the huge impact Covid-19 has had on insurers and low-income communities as the pandemic has heightened awareness of the risk of not being insured, driving up significant demand for health insurance. This shift presents the biggest opportunity for the sector in decades.”
What is microinsurance?
Micro or inclusive insurance products are developed specifically to serve the needs of the low-income population, with cover working towards profitability or at least sustainability. The Microinsurance Network is a not-for-profit association of 70 institutions and 450 experts across more than 60 countries committed to delivering inclusive insurance for billions of people worldwide. Its annual Landscape Report shows the impact targeted products can have for the billions of households and small businesses across the world, still struggling without any form of insurance safety net.