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Global Microinsurance Market Size was valued at USD 85.7 Billion in 2022. The Microinsurance market industry is projected to grow from USD 91.4 Billion in 2023 to USD 147.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.40% during the forecast period (2023 - 2032). A increasing number of microinsurance start-ups are entering the market with innovative microinsurance strategies, and innovative new marketing and sales channels are being developed for microinsurance, are the key market drivers enhancing the market growth.
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The emergence of new and creative marketing and sales channels for microinsurance is what is driving the market's growth. Insurers are able to collaborate with insurtech companies and more successfully market and sell microinsurance products as the insurance industry undergoes a digital transition. Digital platforms that hire gig workers or remittance platforms for migrant workers are also forming a digital ecosystem that may digitally produce and deliver insurance to low-income communities. The business is also predicted to grow as more start-ups offering innovative microinsurance products enter the market. For instance, in April 2021, PNB General Insurers Company, Incorporated (PNBGen) and Palawan Pawnshop, a renowned chain of pawn shops in the Philippines, worked together. Through their combined network of more than 3,000 stores spread across the country, they want to offer two microinsurance products at competitive prices. Two of the products are ProtekTODO Eskwela Max, a student accident insurance policy with yearly premiums of either PHP 50 (USD 0.91) or PHP 30 (USD 0.54), and ProtekTODO Premium Pamilya Max 300, which provides comprehensive personal accident coverage for the entire family for a yearly premium of PHP 300 (USD 5.47).
For the purpose of improving operations and offering better customer service, microinsurance businesses are quickly experimenting with integrating AI and ML. AI and ML can automate the claims processing process by using algorithms to analyze and classify incoming claims based on several factors, such as the kind of claim, the severity of the claim, and the policy coverage. The time and cost involved with manual processing of claims can be significantly reduced with real-time processing. AI and ML have also been used to uncover false claims by looking for patterns and identifying anomalies in the data. This helps microinsurance businesses cut down on losses and stop fraud, which eventually results in lower premiums for customers.
This sector must abide by regulations to protect customers and service providers. In order to ensure the dependability of their services, microinsurance providers must adhere to legal and ethical requirements. Due to regulatory compliance, microinsurance products are designed to protect the interests of clients, particularly those with limited financial resources. Regulatory organizations have established baseline standards for the development, costing, and distribution of microinsurance products in an effort to stop the exploitation of the underprivileged. For instance, the Insurance Business Law of Vietnam became effective on January 1, 2023. It makes it possible for cooperative organizations to offer microinsurance products with less stringent financial, individual, and professional requirements than those imposed by conventional insurance corporations. Thus, driving the Microinsurance market revenue.
The global Microinsurance market segmentation, based on Type, includes lifetime coverage and term insurance. Term insurance segment dominated the global market in 2022. With term insurance, businesses can reach a large number of low-income individuals and families who might not otherwise have access to conventional insurance products.
The global Microinsurance market segmentation, based on Age Group, includes minor, adult, and senior citizens. The Adult segment dominated the global market in 2022. Microinsurance products are becoming more popular among adult consumers due to their many benefits, which fuels category growth.
The global Microinsurance market segmentation, based on Product, includes property insurance, health insurance, life insurance, index insurance, accidental death and disability insurance, and others. Life insurance segment dominated the global market in 2022. Life insurance is now the market leader on a global scale thanks to a combination of lower risk, greater demand, simpler underwriting, and lower rates.
The global Microinsurance market segmentation, based on Provider, includes microinsurance (commercially viable) and microinsurance through aid/government support. Microinsurance (commercially viable) segment dominated the global Microinsurance market in 2022. Commercially successful microinsurance providers are working to develop fresh approaches that are uniquely adapted to the needs of low-income individuals and communities. They include health insurance, which covers specific ailments, and weather index-based insurance, which compensates farmers for crop losses caused by unfavorable weather.
The global Microinsurance market segmentation, based on Distribution Channel, includes direct sales, financial institutions, e-commerce, hospitals, clinics, and others. Financial institution segment dominated the global Microinsurance market in 2022. A significant component of the market is served by banks that concentrate on micro-enterprise solutions, which distribute the majority of the microinsurance that is sold through financial institutions.
The global Microinsurance market segmentation, based on the Model, includes the partner agent model, full-service model, provider-driven model, community-based/mutual model, and others. The partner agent model segment dominated the global Microinsurance market in 2022. Microinsurance providers may benefit from collaborating closely with partner agents who have a solid understanding of the needs and preferences of their clients. Insurance businesses can increase the appeal of their offers to potential customers by collaborating and customizing their products and services to the unique requirements of the local market.
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Insights into the markets in North America, Europe, Asia-Pacific, and the rest of the world are provided by the study. In 2022, this market was headed by the North American Microinsurance Market (45.80%). Offering microinsurance solutions to customers has become easier and more accessible because of the growth of digital platforms and mobile technology. As a result, there are more businesses on the market, including entrepreneurs in the insurance sector that target underserved demographics with technology. The established regulatory framework for insurance products in North America offers a stable environment for microinsurance providers. Further, In the North American area, the U.S. Microinsurance market had the biggest market share, while the Canada Microinsurance market had the quickest rate of expansion.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
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In 2022, the Europe microinsurance market held a sizable portion of the industry. The increasing demand for microinsurance products and services is one of the main forces behind market expansion in the Europe region. In the region, a number of non-governmental organizations, microfinance institutions, and donors are also investing in microinsurance. Further, In the European region, the German Microinsurance market had the biggest market share, and the U.K. Microinsurance market had the quickest rate of growth.
From 2023 to 2032, the Asia Pacific Microinsurance Market is anticipated to experience significant expansion. This is due to the existence of a substantial pool of disadvantaged people, low insurance penetration, a supportive legal framework, and technological innovation. Many nations in the Asia-Pacific region have passed laws to support the expansion of microinsurance initiatives. For instance, in some countries, including the Philippines and Indonesia, key regulatory requirements, like capitalization and solvency constraints, do not apply to providers of microinsurance. For instance, the Philippines' Microinsurance Act of 2013 establishes a simpler regulatory environment for microinsurance. Moreover, In the Asia-Pacific region, the Indian Microinsurance market had the quickest rate of growth while China's Microinsurance market had the greatest market share.
Leading industry companies are making significant R&D investments in order to diversify their product offerings, which will drive the Microinsurance market's expansion. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants are also engaging in a number of strategic actions to increase their global footprint. The Microinsurance sector needs to provide affordable products if it wants to grow and thrive in a more competitive and challenging market environment.
One of the primary business strategies employed by manufacturers in the worldwide Microinsurance industry to assist customers and expand the market sector is local manufacturing to reduce operational costs. Some of the biggest benefits to medicine have recently come from the Microinsurance sector. Major players in the Microinsurance market, including HDFC Ergo General Insurance Company Limited, Hollard, MicroEnsure Holdings Limited, National Insurance Commission, Standard, Chartered Bank, Wells Fargo, SAC Banco do Nordeste, MetLife Services and Solutions, LLC, Bandhan Bank, ICICI Bank, and Tata AIA Life, are attempting to increase market demand by investing in research and development operations.
Business is conducted by holding company MicroEnsure Holding Ltd. The company offers low-cost and acceptable insurance products, such as life, disability, health, property, weather index, and redundancy, to those living in poverty throughout the developing world through its subsidiaries. MicroEnsure operates operations in Cheltenham, the United Kingdom. In October 2021, a strategic partnership was established between MicroEnsure, a subsidiary of Micro Insurance Company (MIC), and Chamasure, a Nairobi-based insurance platform that aims to provide insurance solutions for underserved communities. In Kenya's impoverished communities, MicroEnsure was able to offer full support for the enrollment and claims-settlement processes as well as digital insurance services to residents.
CARD Pioneer Microinsurance Inc. (CMPI), a business based in Makati City, the Philippines, provides microinsurance services. The company develops specialized microinsurance products that enable clients to buy a sizable amount of life and property insurance at prices they can afford. In February 2022, CARD Pioneer Microinsurance Inc. (CMPI) and the Philippine Crop Insurance Corp. (PCIC), a government-owned organization, merged to enhance access to insurance products and services, especially for small farmers in the Philippines.
· HDFC Ergo General Insurance Company Limited
· Hollard
· MicroEnsure Holdings Limited
· National Insurance Commission
· Standard Chartered Bank
· Wells Fargo
· SAC Banco do Nordeste
· MetLife Services and Solutions, LLC
· Bandhan Bank
· ICICI Bank
· Tata AIA Life
February 2022: The Kenyan government has established a digital microinsurance platform that customers may use to purchase and manage their insurance coverage.
· Lifetime Coverage
· Term Insurance
· Minor
· Adult
· Senior Citizens
· Property Insurance
· Health Insurance
· Life Insurance
· Index Insurance
· Accidental Death and Disability Insurance
· Others
· Microinsurance (Commercially Viable)
· Microinsurance Through Aid/Government Support
· Direct Sales
· Financial Institutions
· E-Commerce
· Hospitals
· Clinics
· Others
· Partner Agent Model
· Full-Service Model
· Provider Driven Model
· Community-Based/Mutual Model
· Others
· North America
- U.S.
- Canada
· Europe
- Germany
- France
- U.K
- Italy
- Spain
- Rest of Europe
· Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
· Rest of the World
- Middle East
- Africa
- Latin America
|
Report Attribute/Metric |
Details |
|
Market Size 2022 |
USD 85.7 Billion |
|
Market Size 2023 |
USD 91.4 Billion |
|
Market Size 2032 |
USD 147.4 Billion |
|
Compound Annual Growth Rate (CAGR) |
6.40% (2023-2032) |
|
Base Year |
2022 |
|
Market Forecast Period |
2023-2032 |
|
Historical Data |
2018- 2022 |
|
Market Forecast Units |
Value (USD Billion) |
|
Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
|
Segments Covered |
Type, Age Group, Product, Provider, Distribution Channel, Model, and Region |
|
Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
|
Countries Covered |
The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
|
Key Companies Profiled |
HDFC Ergo General Insurance Company Limited, Hollard, MicroEnsure Holdings Limited, National Insurance Commission, Standard, Chartered Bank, Wells Fargo, SAC Banco do Nordeste, MetLife Services and Solutions, LLC, Bandhan Bank, ICICI Bank, and Tata AIA Life |
|
Key Market Opportunities |
Integration of artificial intelligence |
|
Key Market Dynamics |
The emergence of new and innovative channels to market and sell microinsurance and increasing number of microinsurance start-ups making market foray with innovative microinsurance plans |
The global Microinsurance Market was valued at USD 85.7 billion in 2022, and it is estimated to reach USD 147.4 billion by 2032.
The global market is projected to grow at a CAGR of 6.40% during the forecast period, 2023-2032.
North America had the largest share in the global market
The key players in the market are HDFC Ergo General Insurance Company Limited, Hollard, MicroEnsure Holdings Limited, National Insurance Commission, Standard, Chartered Bank, Wells Fargo, SAC Banco do Nordeste, MetLife Services and Solutions, LLC, Bandhan Bank, ICICI Bank, and Tata AIA Life
The Term Insurance Type dominated the market in 2022.
The Adult Age Group had the largest share in the global market.
Report Code :
RL65167
Published on :
Sep 2023
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