Global Microinsurance Market, By Type (Lifetime Coverage, Term Insurance), Age Group (Minor, Adult, Senior Citizens), Service Provider (Microinsurance (Commercially Viable), Microinsurance Through Aid/Government Support), Model Type (Partner Agent Model, Full-Service Model, Provider Driven Model, Community-Based/Mutual Model, Others), Distribution Channel (Direct Sales, Financial Institutions, E-commerce, Hospitals, Clinics, Others) – Industry Trends and Forecast to 2029
Market Analysis and Size
Microinsurance can be administered by accredited institutions and intermediaries using a variety of models, including the partner-agent model, all-in-one insurance model, full-service model, and community-based model. The safety provided to low-income households with restricted access to income and low-value assets is known as microinsurance. By creating a personalised plan with affordable premiums and providing compensation for illness, injury, disability, and death, it helps people who are financially weaker members of society. It also includes different property risks related to animals, fire, and crops. In addition to offering security from unforeseen losses and the excessive interest rates imposed by unorganised money investors, it consolidates numerous tiny financial units into a larger organisation.
Data Bridge Market Research analyses that the microinsurance market which was USD 78.4 billion in 2021, would rocket up to USD 131.71 billion by 2029, and is expected to undergo a CAGR of 6.70% during the forecast period 2022 to 2029. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team also includes in-depth expert analysis, patient epidemiology, pipeline analysis, pricing analysis, and regulatory framework.
Report Scope and Market Segmentation
2022 to 2029
2020 (Customizable to 2014 - 2019)
Revenue in USD Billion, Volumes in Units, Pricing in USD
Type (Lifetime Coverage, Term Insurance), Age Group (Minor, Adult, Senior Citizens), Service Provider (Microinsurance (Commercially Viable), Microinsurance Through Aid/Government Support), Model Type (Partner Agent Model, Full-Service Model, Provider Driven Model, Community-Based/Mutual Model, Others), Distribution Channel (Direct Sales, Financial Institutions, E-commerce, Hospitals, Clinics, Others)
U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
Market Players Covered
HDFC Ergo General Insurance Company Limited (India), Hollard (Netherlands), MicroEnsure Holdings Limited (U.K.), National Insurance Commission (India), Standard Chartered Bank (U.K.), Wells Fargo (U.S.), SAC Banco do Nordeste (Brazil), MetLife Services and Solutions, LLC (U.S.), Bandhan Bank (India), ICICI Bank (India), Tata AIA Life (India)
Microinsurance products offer coverage to low-income households or to individuals who have little savings. It is tailored specifically for lower valued assets and compensation for illness, injury, or death. Like conventional insurance, microinsurance covers a wide range of hazards. Both health and property threats are included in this. These risks include, among others, crop insurance, livestock/cattle insurance, insurance against fire or theft, health insurance, term life insurance, insurance against death, insurance against disability, and insurance against natural catastrophes.
Microinsurance Market Dynamics
- Upsurge in government initiatives
Factors driving the growth of the market include rising government initiatives for developing reimbursement policies for surgical procedures, rising geriatric population, rising chronic disease incidence, rising cost of healthcare services, and growing GDP and healthcare expenditure globally. The market for microinsurance will expand between 2022 and 2029 as a result of several new opportunities and rising medical expenditures.
- Increasing accessibility of financial services
The main drivers of market growth are the global expansion of the insurance industry and the rising availability of financial services to all social strata. The market is also being positively impacted by recent innovations like peer-to-peer models and other similar consumer-friendly insurance models.
- Improvement in client experiences
Low-income households are provided with insurance coverage through microinsurance since they have restricted income options. Additionally, microinsurance offers clear and affordable insurance plans between the service provider and the insurer, which supports the market's expansion. To improve client experiences and develop a sustainable value chain for microinsurance enterprises, many organisations are also implementing multichannel interaction platforms and virtual networks, which is resulting in a good outlook for the sector.
Microinsurance is becoming increasingly popular with accessibility and open operation, which benefits consumers. Additionally, a number of organisations are using multichannel platforms and virtual networks to create a value chain for the microinsurance industry and to offer incentives. A further factor driving the expansion of the microinsurance sector is the emergence of consumer-friendly insurance schemes like the peer-to-peer model. Automated portfolio monitoring is becoming more popular among businesses since it enables them to maintain track of their clients' credit flows, keep track of their progress, and act appropriately right away. By reducing their risks, the microinsurance businesses can increase revenues and profits.
- High Cost
Rising cost of healthcare insurance products along with stringent regulations and longer time for claim reimbursement will hinder the growth of the microinsurance market in the 2022–2029 forecast period.
This microinsurance market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the microinsurance market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
COVID-19 Impact on Microinsurance Market
The COVID-19 pandemic had a negative effect on the expansion of the microinsurance sector. The acceptance of insurance coverage decreased due to various unexpected problems brought by the epidemic, such as restrictions on human movement due to safety concerns. Microinsurance policies were adopted in emerging economies, though, as a result of continued digitalization and rising consumer awareness of different insurance policies. This development is consequently anticipated to support market growth throughout the forecast period.
- In April 2021, In order to expand microinsurance in the nation and create new insurance products for the Tanzanian market, Micro Insurance and TanManagement Insurance Brokers, a Tanzanian company, have established a cooperation.
Global Microinsurance Market Scope
The microinsurance market is segmented on the basis of type, age group, product, provider, distribution channel and model. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
- Lifetime Coverage
- Term Insurance
- Senior Citizens
- Property Insurance
- Health Insurance
- Life Insurance
- Index Insurance
- Accidental Death and Disability Insurance
- Microinsurance (Commercially Viable)
- Microinsurance Through Aid/Government Support
- Direct Sales
- Financial Institutions
- Partner Agent Model
- Full-Service Model
- Provider Driven Model
- Community-Based/Mutual Model
Microinsurance Market Regional Analysis/Insights
The microinsurance market is analysed and market size insights and trends are provided by country, type, age group, product, provider, distribution channel and model as referenced above.
The countries covered in the microinsurance market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
North America dominates the microinsurance market due to the growing number of geriatric population along with adoption of innovative medical technology.
Asia-Pacific dominates the microinsurance market due to the improving national economies, increasing low-income population, and regional regulatory and lawmaking development.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Microinsurance Market Share Analysis
The microinsurance market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to microinsurance market.
Some of the major players operating in the microinsurance market are:
- HDFC Ergo General Insurance Company Limited (India)
- Hollard (Netherlands)
- MicroEnsure Holdings Limited (U.K.)
- National Insurance Commission (India)
- Standard Chartered Bank (U.K.)
- Wells Fargo (U.S.)
- SAC Banco do Nordeste (Brazil)
- MetLife Services and Solutions, LLC (U.S.)
- Bandhan Bank (India)
- ICICI Bank (India)
- Tata AIA Life (India)