The role of InsureTech in microinsurance: How is InsureTech addressing 5 challenges in microinsurance?

Cenfri, FSD Africa | Cenfri, FSD Africa

The business of insurance is hard. Microinsurance has proven to be nearly impossible. Whilst promising examples have been documented of insurers achieving the impossible, sometimes even at scale, insurance cover for billions of excluded adults appears to be a long way down the road. The challenges in microinsurance are many, but there are five key challenges for providers for doing business in this space and include: (1) lack of information on consumers; (2) consumers beyond current reach; (3) different and new consumer needs; (4) customers inexperienced with formal financial services; and (5) constrained business models. This focus note explores how the latest wave of InsurTech is addressing these 5 challenges and identifies six new trends that will improve the way insurance is done and enable new, valuable types of covers in the microinsurance space. It is based on a scan of more than 160 microinsurance initiatives in developing countries and emerging markets.

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