Microinsurance Market Size
| Study Period | 2020-2029 |
| Market Size (2024) | USD 70.10 Billion |
| Market Size (2029) | USD 96.22 Billion |
| CAGR (2024 - 2029) | 6.53 % |
| Fastest Growing Market | North America |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Microinsurance Market Analysis
The Microinsurance Market size is estimated at USD 70.10 billion in 2024, and is expected to reach USD 96.22 billion by 2029, growing at a CAGR of 6.53% during the forecast period (2024-2029).
The growing utility and cost-effectiveness of mobile technology worldwide have opened the floodgates for the global microinsurance market. With increased demand from low-income individuals, emerging markets, and SMEs, the expansion of the microinsurance market lies in the use of technology and innovative financial systems. This growing market represents a significant opportunity for businesses prepared for growth.
The revenue generated from microinsurance is consistently rising, indicating a growing global embrace and utilization of these products. This trend is attributed to factors such as expanded microinsurance options, collaborative efforts between insurers and microfinance institutions, and governmental regulations. Microinsurance encompasses a wide range of risks, including health, life, property, agriculture, and livestock insurance. The demand for microinsurance stems from the necessity to mitigate financial insecurity among underserved populations and promote economic resilience.
Microinsurance providers are leveraging technology, sustainability, and innovation to enhance customer service and contribute positively to society. The COVID-19 pandemic has highlighted the necessity for digital transformation within the microinsurance sector, accelerating the shift toward digital distribution channels. These digital platforms enable customers to conveniently purchase insurance from their homes, eliminating face-to-face interaction requirements. Digital channels can also be customized to meet the needs of different customer segments, offering a more personalized experience. The commercially viable market has experienced rapid growth in recent years, driven by various developments that have expanded product availability.
Microinsurance Market Trends
Low- and Middle-income Earners prefer Healthcare Insurance
In Africa, health microinsurance distributors are agents and brokers. In Latin America and the Caribbean, financial institutions dominate the distribution of health microinsurance. According to a report, 49% of policyholders were women, whereas the female population constituted 51% of individuals covered by health microinsurance.
The segment's growth is due to the increasing cost of healthcare worldwide. Healthcare expenses are increasing all over the world. Low-income people and families are at a higher risk of financial loss due to unexpected medical costs. Health insurance helps to reduce this risk and provides affordable healthcare services.
In India, the National Health Protection Scheme (NHPS) serves as the government's primary initiative for impoverished and disadvantaged families. This program aims to extend coverage to more than 100 million economically challenged households, offering an annual sum of INR 5 lakhs (USD 6,042.2).
Asia-Pacific is Dominating the Microinsurance Market
Asia-Pacific is one of the largest microinsurance markets globally, primarily attributed to the increasing demand for microinsurance products and services in developing nations. The adoption of microinsurance has been propelled by modest premium payments from economically disadvantaged individuals, the digitally savvy younger generation, and supportive government initiatives aimed at broadening microinsurance coverage nationwide.
The rise in demand is driven by the growing requirement for economical and easily accessible insurance options for individuals with low incomes and limited access to services. With shifts occurring in the global financial arena, microinsurance is crucial in narrowing disparities and advancing financial inclusion. Asia-Pacific spearheads microinsurance adoption and financial literacy initiatives. Conversely, Africa is emerging as a frontrunner in growth due to innovative distribution methods, robust regulatory structures, and backing from aid organizations.
Government-backed microinsurance initiatives like the Indian PMSBY and PMJJBY concentrate on furnishing financial protection to at-risk demographics. Customized microinsurance regulatory frameworks advocate for consumer welfare, clear product offerings, and a conducive market atmosphere.
Microinsurance Industry Overview
The microinsurance market is fragmented. Microinsurance providers also use data analytics to understand the needs of their customers and create products that fulfill those needs. Machine learning algorithms are used to analyze customer data and create risk models to meet the needs of the customers. Leading companies are making strategic investments, including product launches, partnering, and M&A, to stay competitive and provide cutting-edge solutions to their clients. The major players dominating the market are The Hollard Insurance Company, afpgen.com.ph, American International Group Inc., and Bharti AXA Life Insurance Company Limited.
Microinsurance Market Leaders
The Hollard Insurance Company
afpgen.com.ph
American International Group, Inc.
Bharti AXA Life Insurance Company Limited
SBI Life Insurance Company Limited
*Disclaimer: Major Players sorted in no particular order
Microinsurance Market News
- October 2023: Bharti Group entered an agreement with its partner AXA to purchase AXA's 49% ownership stake in Bharti AXA Life Insurance. The completion of the transaction was anticipated by December 2023.
- April 2023: American International Group (AIG) finalized its arrangement with investment funds managed by Stone Point Capital to establish a standalone managing general agency, Private Client Select Insurance Services. This agency will focus on serving high-net-worth and ultra-high-net-worth markets.
Microinsurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Access to Financial Services
4.2.2 Rise of Digital Platforms and Mobile Technology
4.3 Market Restraints
4.3.1 Data Privacy and Security Concerns Impeding Market Growth
4.4 Market Opportunities
4.4.1 Increasing Government Regulations on Mandatory Insurance Coverage in Developing Countries
4.4.2 Rise in the Middle-class Population in Developing Countries
4.5 Value Chain/Supply Chain Analysis
4.6 Industry Attractiveness: Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
4.7 Insights into Trends and Innovations in the Microinsurance Industry
4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Model Type
5.1.1 Partner Agent Model
5.1.2 Full-service Model
5.2 By Product Type
5.2.1 Life Insurance
5.2.2 Health Insurance
5.2.3 Property Insurance
5.2.4 Other Product Types
5.3 By Distribution Channel
5.3.1 Direct Sales
5.3.2 Financial Institutions
5.3.3 Digital Channels
5.3.4 Other Distribution Channels
5.4 By Provider
5.4.1 Commercially Viable
5.4.2 Through Aid/Government Support
5.5 By Geography
5.5.1 North America
5.5.2 Europe
5.5.3 Asia-Pacific
5.5.4 Middle East and Africa
5.5.5 South America
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
- *List Not Exhaustive
6.3 Company Profiles
6.3.1 The Hollard Insurance Company
6.3.2 afpgen.com.ph
6.3.3 American International Group Inc.
6.3.4 Bharti AXA Life Insurance Company Limited
6.3.5 SBI Life Insurance Company Limited
6.3.6 ICICI Prudential Life Insurance Co. Ltd
6.3.7 Banco do Nordeste Brasil SA
6.3.8 Climbs
6.3.9 Allianz SE
6.3.10 Bajaj Allianz Life Insurance Co. Ltd*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Microinsurance Industry Segmentation
Microinsurance aims to offer affordable protection to individuals with limited income, aiding them in coping with and recuperating from setbacks. The microinsurance market is segmented by model type, product type, distribution channel, provider, and geography. By model type, the market is segmented into partner agent model and full-service model. By product type, the market is segmented into life insurance, health insurance, property insurance, and other product types (index insurance, accidental death and disability insurance, etc.). By distribution channel, the market is segmented into direct sales, financial institutions, digital channels, and other distribution channels (clinics, hospitals, etc.). By provider, the market is segmented into commercially viable and through aid/government support. The report offers market size and forecasts for all the above segments in value (USD) and volume (ton).
| By Model Type | |
| Partner Agent Model | |
| Full-service Model |
| By Product Type | |
| Life Insurance | |
| Health Insurance | |
| Property Insurance | |
| Other Product Types |
| By Distribution Channel | |
| Direct Sales | |
| Financial Institutions | |
| Digital Channels | |
| Other Distribution Channels |
| By Provider | |
| Commercially Viable | |
| Through Aid/Government Support |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Middle East and Africa | |
| South America |
Microinsurance Market Research FAQs
How big is the Microinsurance Market?
The Microinsurance Market size is expected to reach USD 70.10 billion in 2024 and grow at a CAGR of 6.53% to reach USD 96.22 billion by 2029.
What is the current Microinsurance Market size?
In 2024, the Microinsurance Market size is expected to reach USD 70.10 billion.
Who are the key players in Microinsurance Market?
The Hollard Insurance Company, afpgen.com.ph, American International Group, Inc., Bharti AXA Life Insurance Company Limited and SBI Life Insurance Company Limited are the major companies operating in the Microinsurance Market.
Which is the fastest growing region in Microinsurance Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Microinsurance Market?
In 2024, the Asia Pacific accounts for the largest market share in Microinsurance Market.
What years does this Microinsurance Market cover, and what was the market size in 2023?
In 2023, the Microinsurance Market size was estimated at USD 65.52 billion. The report covers the Microinsurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Microinsurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Microinsurance Industry Report
Statistics for the 2024 Microinsurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Microinsurance analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
