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Micro Insurance Market Size

  • Report ID: GMI7038
  • Published Date: Oct 2023
  • Report Format: PDF

Micro Insurance Market Size

Micro Insurance Market size was valued at USD 74.2 billion in 2023 and is projected to grow at a CAGR of over 6.5% between 2024 and 2032. Government-led initiatives promoting micro insurance policies have propelled the market growth. These policies, designed for the needs of low-income individuals and small businesses, provide essential financial protection.

 

Micro Insurance Market

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According to the press release by the Press Information Bureau (PIB), in the life insurance segment, 1.07 million new micro insurance policies were issued in 2021, generating a business premium of USD 45.2 million. Around 53,046 micro insurance policies were issued in the general insurance segment. The government's active role in encouraging and implementing these schemes raises awareness, making insurance accessible to a broader demographic.
 

Insurance policies customized for the low-income demographic are propelling the micro insurance market. These policies, specifically designed to meet the financial needs of individuals with limited resources, provide essential coverage at affordable premiums. By offering protection against various risks, such as health emergencies and natural disasters, micro insurance policies enhance financial security for vulnerable communities. Government initiatives and insurance providers' efforts to make these policies accessible and affordable have significantly expanded the market, ensuring greater financial inclusion and stability among low-income populations.
 

Limited awareness about micro insurance products poses a significant challenge to market size. Many potential beneficiaries, especially in low-income and rural areas, lack of knowledge about the existence, benefits, and affordability of these insurance options. This lack of understanding hampers their ability to make informed decisions about insurance coverage. Educational campaigns, community outreach programs, and financial literacy initiatives are crucial in addressing this challenge, ensuring that the target demographic comprehends the value and relevance of micro insurance to their specific needs.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of micro insurance reached USD 74.2 billion in 2023 and is poised to observe over 6.5% CAGR between 2024 and 2032, owing to promotion initiatives led by the government.

The business segment was valued at over USD 36 billion in 2023, due to the introduction of insurance products specifically catering to micro and small businesses.

Asia Pacific market accounted for a revenue share of over 35% in 2023, attributed to the increased funding in micro insurance startups.

Allianz SE, Axa Group, Bajaj Allianz Life Insurance Co. Ltd., BRAC, MetLife Foundation, MicroEnsure, SKS Microfinance, Swiss Re, Telenor Microfinance Bank, and Zurich Insurance Group.

Micro Insurance Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 15
  • Tables & Figures: 389
  • Countries covered: 11
  • Pages: 295
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