How microinsurance is seen in the insurance industry, plus six examples
Microinsurance or small ticket insurance as it is often referred to in developed markets is making significant progress in the industry. From Bolivia to Bangladesh and Nigeria to the Netherlands, millions of people turn to micro-insurance to protect their assets against losses, whether for livestock in emerging markets or for pets in mature markets.
Just under two decades have passed since the concept of microinsurance was revealed as an extension of microfinance. It soon became a credible financial service category in itself, with extremely low premiums.
Microinsurance is also called inclusive insurance and for good reason. It offers services to a large community segment that until recently did not have access to insurance.
As a sign of his perceived importance, the World Economic Forum has teamed up with industrial giants to create a company that offers services as cover protection to vulnerable farmers in Africa. Blue Marble Microinsurance was introduced in 201
The International Labor Organization offers grants of up to $ 500,000 for microinsurance projects in developing countries through Microsafety Innovation Facility, launched in 2008.
In Puerto Rico, destroyed by Hurricane Maria last year, legislative work is underway to provide the poor , the first US jurisdiction to do so.
A study published in 2017 by the Microinsurance Network and the Munich Re Foundation showed that more than 52 million people in Latin America and the Caribbean had at least one micro-security policy in December 2016. In Africa, close to 62 million people in the world map of micro-insurances had coverage by the end of 2014
Adult markets are also experiencing rapid growth in the insurance sector for small tickets, where deman d is robust for products such as travel insurance and extended guarantees.
How microinsurance is seen in the industry
Much of this growth has been achieved thanks to the development of the technology. Accenture, as part of ours
Technical vision 2018
survey, reached out to more than 6,300 business executives and IT managers to measure their views. Respondents included 623 managers from the insurance industry.
The survey of insurance companies showed that 25 percent of those asked have already entered the market, while another 43 percent believe that it has good potential and plans to come in soon. "Only 2 percent found it unattractive.
The study gives a perspective on what insurers are doing now and whether their projects are long-term sustainable.
Six examples of microinsurance and ticket insurance  Much of the inspiration for the current situation for the Market has come from insurtechs, which does not lead to a revolution in the small ticket industry. Here are some examples:
Cuvva offers one of the most common forms of ticket insurance with its car insurance in the UK. Just buy coverage when they need it. The all-digital transactions are done in less than 10 minutes and add to the popularity of the service.
Lemonade includes a peer-to-peer insurance model that allows policyholders, usually friends, to merge their premiums and thereby reduce costs New York Insurtech's business model is partly based on the bet One-off Economy
In India, Toffee offers what it calls "bite-sized" insurance for things like fitness, commuting and backpacking.
Blockchain technology is also used in the microinsurance business. In the latter initiative, British charity Oxfam has announced a partnership with Etherisc to offer insurance to rice growers in Sri Lanka.
In the West African country of Mali, an Israeli start a quick business sale by simply using an interface based on text messages. OKO's pilot project has attracted hundreds of farmers because all transactions are made on mobile devices. Since the company is focused on crop insurance, satellite images and radar-based technologies are used to define weather risks with precision.
And in Myanmar, Swiss startup Stonestep works with an international aid organization to expand the microinsurance coverage in the Asian country, with a target of 600,000 customers over the next two years
These examples illustrate the growing geographic and functional diversity of the microinsurance industry. By joining forces with insurtechs or developing their own disturbances, the insurance companies gradually insure the market for their products.
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Accenture Technology Vision 2018