Inclusive Insurance Closing the Protection Gap for Emerging Customers

S. Cheston, S. Kelly, A. McGrath, C. French & D. Ferenzy | Center for Financial Inclusion at Accion , Institute of International Finance

Emerging consumers present a promising market for insurance, and creative insurance companies have been developing promising models to reach this market for years. Since the 1990s, the microinsurance movement has demonstrated the benefits of insurance for low-income people, as well as exploring new business models to serve these customers profitably in frontier and emerging markets. Microinsurance pioneers, as well as social insurance programs, targeted customers in the informal economy who were underserved by mainstream commercial insurance. Microinsurance models matched their premiums and benefits to the needs of these groups. Today, inclusive insurance expands this market and product-development work to all those who have not been served by traditional insurance, including the lower middle class, while retaining a particular emphasis on vulnerable and low-income populations. This report is based on written submissions and in-depth interviews with thirty insurers and insurance experts who are making inclusive insurance work as a profitable business model. Their optimism about inclusive insurance stems from both the sheer size of the potential market and the fact that rising incomes equip a large segment of the global population with the incomes needed to benefit from insurance services and afford the relevant premiums.

Agricultural & Rural Finance, Access to Finance, Microinsurance, Insurance
Year of publication:
External Document: