Micro Insurance Market Size - By Product Type (Health, Life, Property), Distribution Channel (Direct Sales, Microfinance Institutions, Digital Platform), End Use (Business, Personal), Model Type, Provider, Regional Outlook & Global Forecast, 2024 – 2032
Published Date: March - 2025 | Publisher: MIR | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationMicro Insurance Market Size
Micro Insurance Market size was USD 74.2 billion in 2023 and is estimated to grow at a CAGR of more than 6.5% from 2024 to 2032. Government initiatives supporting micro insurance policies have driven the growth of the market. Such policies for the requirements of poor people and small enterprises offer them financial security.
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As per the Press Information Bureau (PIB) press release, in the life insurance category, 1.07 million new micro insurance policies were sold during 2021, which collected a business premium of USD 45.2 million. An estimated 53,046 micro insurance policies were sold in the general insurance category. The intervention of the government in promoting and launching these schemes increases awareness and brings insurance to a larger populace.
| Report Attribute | Details |
|---|---|
| Base Year | 2023 |
| Micro Insurance Market Size in 2023 | USD 74.2 Billion |
| Forecast Period | 2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR | 6.9% |
| 2032 Value Projection | USD 133.7 Billion |
| Historical Data for | 2018 – 2023 |
| No. of Pages | 295 |
| Tables, Charts & Figures | 389 |
| Segments covered | Product Type, Model Type, Provider, Distribution Channel, End-use, and Region |
| Growth Drivers |
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| Pitfalls & Challenges |
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What are the growth opportunities in this market?
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Customized insurance policies for the low-income population are driving the growth of micro insurance. These insurance policies, tailored to address the financial requirements of people with fewer resources, ensure protection at low premiums. By providing coverage against different risks, including health crises and natural disasters, micro insurance policies build financial security for economically vulnerable populations. Government initiatives and efforts by insurance providers to make these policies accessible and affordable have significantly expanded the market, leading to improved financial inclusion and stability among low-income individuals.
Low awareness of micro insurance products is a key challenge to the size of the market. Most likely beneficiaries, particularly in rural and low-income areas, are not aware of the availability, benefits, and affordability of such insurance covers. This lack of understanding impedes their capacity to effectively make decisions regarding insurance coverage. Programmes of education, community outreach, and financial literacy are vital in solving this challenge, making sure that the target group understands the value and applicability of micro insurance to their specific needs.
COVID-19 Impact
The COVID-19 pandemic had a negative effect on the micro insurance market. Economic instability and loss of employment tightened the purses of poor people, so insurance premiums were out of their reach for many. The pandemic also created a greater awareness about health-related risk, which made people demand insurance more. Despite this, operating difficulties, lowered disposable income, and shifting priorities of consumers provided obstacles to micro insurers, so policy sales decreased and the weakness of the market in times of economic downturn became evident.
Micro Insurance Market Trends
Affordable accident and death cover insurance is a critical driver of micro insurance growth. Intended for poor people, the policies provide necessary cover without breaking tight purses. For example, in April 2023, insurtech firm aYo Holdings, founded by MTN, the Africa telecommunications market leader, launched its operations in Cameroon. The firm offers revolutionary insurance products that offer affordable death and accident cover to local customers.
Through affordable coverage against death and accidents, micro insurance emerges as a viable and real solution for poor populations. Such affordability raises financial protection and promotes the higher use of micro insurance, leading to increased growth and broader coverage of under-served people.
Digital enrollment and payment of premiums are transforming the micro insurance sector. Through the use of digital platforms, insurers simplify the enrollment process, making it faster and more convenient for low-income individuals. Digital payment methods increase convenience, allowing policyholders to pay premiums via mobile applications or online platforms and avoiding the need for physical payments. This continuous experience leads to more enrollment and makes it simpler, quicker, and friendlier for both policyholders and insurers, widening the reach of the market and accelerating the growth of market.
Micro Insurance Market Analysis
Discover more about the most important segments defining this market
By product type, the life micro insurance segment is expected to grow at 7% CAGR in the forecast period. Affordability is the basis of growth of the life microinsurance segment. Microinsurance policies are carefully designed to be economically affordable to people with small incomes so that even those from low-economic classes can buy life coverage.
Premiums are designed to fit within the limited financial resources of such policyholders, so life insurance is within the reach of a larger population. By maintaining affordable costs, micro insurers address the needs of marginalized communities and allow them to protect their families' financial future without causing excessive financial strain, thus promoting financial security and inclusion in the low-income segment.
Find out more about the most influential segments driving this market
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Depending on the end use, the business segment dominated the size of the micro insurance market at approximately USD 36 billion in 2023. The emergence of insurance products tailored to cover micro and small businesses is driving growth in this segment. The customized products serve the specific needs of small businesses by offering them relevant and affordable coverage.
For example, in March 2023, TD Insurance launched a niche insurance product for small businesses in Canada. This direct insurance policy is designed to provide tailored coverage for micro and small businesses in various sectors like retail, contractors, wholesale, business, and professional services, and healthcare. By filling the insurance gap for businesses in these industries, insurers are promoting financial protection. This focused strategy improves access and spurs micro and small enterprises to invest in insurance, driving market growth.
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Asia Pacific micro insurance market generated 35% of the revenue share in 2023. Growing funding in micro insurance startups is spreading the market growth. Growing interest and funding from investors help startups innovate & expand business and reach more poor masses.
For example, in June 2021, Bimaplan, an insurtech firm, raised a pre-series A round of funding, raising USD 2.5 million. Notable investors were top global venture capital firms such as Amino Capital, Acequia Capital, Emphasis Ventures (EMVC), and Goodwater Capital. With additional capital, these startups are able to create tailored, low-cost insurance products, improving financial security and inclusion for individuals and small businesses. The flow of capital drives the market by promoting innovations, enhancing accessibility, and making micro insurance programs sustainable 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
- Allianz SE
- Axa Group
- Bajaj Allianz Life Insurance Co. Ltd.
- BRAC
- MetLife Foundation
- MicroEnsure
- SKS Microfinance
- Swiss Re
- Telenor Microfinance Bank
- Zurich Insurance Group
Micro Insurance Industry News
- In September 2023, Turaco, an African tech-enabled micro insurance provider, acquired MicroEnsure Ghana, a micro insurance company previously owned by MIC Global. Following the acquisition, MicroEnsure Ghana will be rebranded as Turaco Ghana, with the existing team and leadership retaining their expertise within the company.
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
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Market, By Product Type
- Health microinsurance
- Life microinsurance
- Property microinsurance
- Others
Market, By Model Type
- Partner agent model
- Full-service model
- Provider-driven model
- Others
Market, By Provider
- Microinsurance
- Microinsurance through aid/government support
Market, By Distribution Channel
- Direct sales
- Microfinance institutions
- Digital platform
Market, By End Use
- Business
- Personal
The above information has been provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Nordics
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Southeast Asia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- UAE
- South Africa
- Saudi Arabia
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