Report Content
Chapter 1 Methodology & Scope
1.1 Market scope & definition
1.2 Base estimates & calculations
1.3 Forecast calculation
1.4 Data sources
1.4.1 Primary
1.4.2 Secondary
1.4.2.1 Paid sources
1.4.2.2 Public sources
Chapter 2 Executive Summary
2.1 Micro insurance market 3600 synopsis, 2018 - 2032
2.2 Business trends
2.2.1 Total Addressable Market (TAM), 2024 - 2032
2.3 Regional trends
2.4 Product type trends
2.5 Model type trends
2.6 Provider trends
2.7 Distribution channel trends
2.8 End-use trends
Chapter 3 Micro Insurance Market Industry Insights
3.1 Impact of COVID-19
3.2 Impact of the Russia-Ukraine war
3.3 Industry ecosystem analysis
3.4 Vendor matrix
3.5 Profit margin analysis
3.6 Technology & innovation landscape
3.7 Patent analysis
3.8 Key news and initiatives
3.8.1 Partnership/Collaboration
3.8.2 Merger/Acquisition
3.8.3 Investment
3.8.4 Product launch & innovation
3.9 Regulatory landscape
3.10 Impact forces
3.10.1 Growth drivers
3.10.1.1 Rising goal of extending financial services
3.10.1.2 Supportive regulatory frameworks and incentives from governments
3.10.1.3 Technology advancements such as mobile and digital platforms
3.10.1.4 Increasing education and awareness campaigns among low-income individuals
3.10.2 Industry pitfalls & challenges
3.10.2.1 Overpricing and complexity
3.10.2.2 Lack of trust and understanding
3.11 Growth potential analysis
3.12 Porter’s analysis
3.13 PESTEL analysis
Chapter 4 Competitive Landscape, 2023
4.1 Introduction
4.2 Company market share, 2023
4.3 Competitive analysis of major market players, 2023
4.3.1 Allianz SE
4.3.2 Axa Group
4.3.3 BRAC
4.3.4 MetLife Foundation
4.3.5 MicroEnsure
4.3.6 Swiss Re
4.3.7 Zurich Insurance Group
4.4 Competitive positioning matrix, 2023
4.5 Strategic outlook matrix, 2023
Chapter 5 Micro Insurance Market Estimates & Forecast, By Product Type (Revenue)
5.1 Key trends, by product type
5.2 Health microinsurance
5.3 Life microinsurance
5.4 Property microinsurance
5.5 Others
Chapter 6 Micro Insurance Market Estimates & Forecast, By Model Type (Revenue)
6.1 Key trends, by model type
6.2 Partner agent model
6.3 Full-service model
6.4 Provider driven model
6.5 Others
Chapter 7 Micro insurance Market Estimates & Forecast, By Provider (Revenue)
7.1 Key trends, by provider
7.2 Microinsurance
7.3 Microinsurance through aid/government support
Chapter 8 Micro insurance Market Estimates & Forecast, By Distribution Channel (Revenue)
8.1 Key trends, by distribution channel
8.2 Direct sales
8.3 Microfinance institutions
8.4 Digital platform
Chapter 9 Micro insurance market Estimates & Forecast, By End-Use (Revenue)
9.1 Key trends, by end-use
9.2 Business
9.3 Personal
Chapter 10 Micro insurance Market Estimates & Forecast, By Region (Revenue)
10.1 Key trends, by region
10.2 North America
10.2.1 U.S.
10.2.2 Canada
10.3 Europe
10.3.1 UK
10.3.2 Germany
10.3.3 France
10.3.4 Italy
10.3.5 Spain
10.3.6 Nordics
10.4 Asia Pacific
10.4.1 China
10.4.2 India
10.4.3 Japan
10.4.4 Australia
10.4.5 South Korea
10.4.6 Southeast Asia
10.5 Latin America
10.5.1 Brazil
10.5.2 Mexico
10.5.3 Argentina
10.6 MEA
10.6.1 UAE
10.6.2 Saudi Arabia
10.6.3 South Africa
Chapter 11 Company Profiles
11.1 AIA Group
11.2 Allianz SE
11.3 ASA International
11.4 AXA Group
11.5 Bajaj Allianz Life Insurance Co. Ltd.
11.6 Basix
11.7 BIMA
11.8 BRAC (formerly known as Bangladesh Rural Advancement Committee)
11.9 MetLife Foundation
11.10 MicroEnsure
11.11 Old Mutual Limited
11.12 Oxfam America
11.13 SKS Microfinance
11.14 Telenor Microfinance Bank
11.15 Zurich Insurance Group
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.
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.
COVID-19 Impact
The COVID-19 pandemic adversely impacted the micro insurance market. Economic uncertainties and job losses strained the finances of low-income individuals, making insurance premiums unaffordable for many. Additionally, the pandemic raised awareness about health-related risks, increasing the demand for insurance. However, operational challenges, reduced disposable income, and changing consumer priorities created hurdles for micro insurers, leading to a slowdown in policy sales and highlighting the market's vulnerability during times of economic crisis.
Micro Insurance Market Trends
Affordable accident and death cover insurance plays a pivotal role in propelling the micro insurance industry. Designed for low-income individuals, these policies offer essential protection without straining limited budgets. For instance, in April 2023, aYo Holdings, an insurtech company established by MTN, the telecommunications leader in Africa, initiated its services in Cameroon. The company introduces innovative insurance products that provide affordable accident and death coverage to local consumers.
By providing accessible coverage against accidents and death, micro insurance becomes a practical and feasible option for vulnerable communities. This affordability enhances financial security and encourages greater adoption of micro insurance, thereby driving growth and ensuring widespread coverage among underserved populations.
Digitalization in enrollment and premium payments is revolutionizing the micro insurance market. By leveraging digital platforms, insurers streamline the enrollment process, making it quicker and more accessible for low-income individuals. Digital payment options enhance convenience, enabling policyholders to pay premiums through mobile apps or online platforms and eliminating the need for physical transactions. This seamless experience encourages more people to enroll and makes it easier, faster, and more user-friendly for both insurers and policyholders, expanding the market reach and boosting the growth of market.
Micro Insurance Market Analysis
Based on product type, the life micro insurance segment is poised to expand at 7% CAGR during the forecast period. Affordability is the foundation of the life microinsurance segment growth. Microinsurance policies are meticulously crafted to be financially accessible to individuals with limited incomes, ensuring that even those in low-economic strata can afford life coverage.
Premiums are structured to match the modest budgets of these policyholders, making life insurance affordable for a wider demographic. By keeping costs low, micro insurers cater to the needs of vulnerable communities and enable them to safeguard their families' financial future without imposing undue financial burden, thereby fostering financial security and inclusion among the low-income demographic.
Based on the end use, the micro insurance market size of business segment dominated around USD 36 billion in 2023. The introduction of insurance products specifically catering to micro and small businesses is fueling growth within this segment. These customized offerings address the unique needs of small enterprises, providing them with affordable and relevant coverage.
For instance, in March 2023, TD Insurance introduced a specialized insurance product aimed at small businesses in Canada. This direct insurance offering is crafted to offer customized coverage for micro and small businesses operating in diverse sectors such as retail, contractors, wholesale, business, and professional services, as well as healthcare. By bridging the insurance gap for businesses in these sectors, insurers are fostering financial security. This targeted approach enhances accessibility and encourages micro and small businesses to invest in insurance, propelling market expansion.
Asia Pacific micro insurance market accounted for 35% of the revenue share in 2023. Increased funding in micro insurance startups is proliferating the market growth. Investors' rising interest and financial support enable startups to innovate & expand their services and reach more underserved populations.
For instance, in June 2021, Bimaplan, an insurtech startup, completed a pre-series A funding round, securing USD 2.5 million. Notable participation came from prominent global venture capital firms including Amino Capital, Acequia Capital, Emphasis Ventures (EMVC), and Goodwater Capital. With more capital, these startups can develop customized, affordable insurance products, enhancing financial inclusion and security for individuals and small businesses. The influx of funding propels the market by encouraging innovations, improving accessibility, and ensuring the sustainability of micro insurance initiatives across the Asia Pacific region.
Micro Insurance Market Share
In the competitive landscape of the market, dominant players including Axa Group and Swiss Re dominate through strategic product launches. They continually innovate, introducing new insurance solutions, and bolster their positions through strategic acquisitions, ensuring a strong market presence and pioneering advancements in micro insurance offerings.
Micro Insurance Market Companies
Major companies operating in the micro insurance industry are:
Micro Insurance Industry News
The micro insurance market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:
Market, By Product Type
Market, By Model Type
Market, By Provider
Market, By Distribution Channel
Market, By End Use
The above information has been provided for the following regions and countries: