Microinsurance Network Chairman (MiN) and Pioneer Group Head Lorenzo Chan Jr. shares breakthroughs in inclusive insurance but stresses that much is still to be done to better serve the low-income sector who need it most.
In a recent article published by the European Financial Review, an online business intelligence platform, Chan highlights the MiN’s 2023 Landscape of Microinsurance Study findings. According to the study, 330 million people in 36 surveyed countries, equivalent to 11.5% of the target population, now have microinsurance coverage. This is a significant increase from the 7% reported in 2019. However, this also reveals that nearly 90% of the target market still lacks insurance protection, emphasizing the need for sustained efforts in this area.
The low-income sector has few resources and cannot afford to wait long to receive their insurance benefits. Many live hand to mouth and, hence, need to claim quickly so they can rebuild as soon as possible. “Speedy claims settlement and turnaround time should be part of the equation if one is to win more converts and believers,” Chan shared.
Chan also highlighted the driving forces behind microinsurance: the billions of individuals comprising the market, the significant risk exposure necessitating protection, and the abundance of insurers. However, the challenge lies in finding people willing to explore the micro market’s unique needs and what it can afford, going beyond conventional business models.
“The time is ripe. Regulators must continue enabling the industry to do more, whether by creating awareness, innovating products, and approaches, digitalizing and simplifying processes for ease of doing business or creating value propositions that benefit the client,” Chan added.
Microinsurance Network (MiN) is a global non-profit multi-stakeholder platform that promotes inclusive insurance to low-income households worldwide. Since 2021, Chan has been the first and only Asian to serve as MiN Chairperson.
The 2023 Landscape of Microinsurance Study by the Microinsurance Network gathered data from 294 insurance providers across 36 countries. It provides a unique benchmark tracking uptake of microinsurance products and services with insights into emerging trends.
ADVT.
This article is brought to you by Micro Insurance.
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