Page 40 - The Insurance Times October 2024

Inclusive Insurance -

Global Landscape :

Summary of recent

studies

A report from the Microinsurance Network reveals that inclusive insurance is making strides, but
challenges remain in terms of scale and reach. The report finds that 330 million individuals are
covered globally by inclusive insurance products, including health, agriculture, and property
insurance. However, despite these advancements, there is still an 88.5% protection gap—only 11.5%
of the potential market is currently insured.

A report from the Microinsurance Network reveals Small, and Medium Enterprises) in V20 countries to climate-

that inclusive insurance is making strides, but related risks. The report underscores that MSMEs represent
challenges remain in terms of scale and reach. 70% of employment and 40% of GDP in V20 economies, but
The report finds that 330 million individuals are less than 15% of MSMEs are insured against climate risks.
covered globally by inclusive insurance products, including The lack of protection exposes these businesses to signifi-
health, agriculture, and property insurance. However, de- cant losses from natural disasters such as floods and
spite these advancements, there is still an 88.5% protection droughts.
gap—only 11.5% of the potential market is currently insured.
The report highlights that new product innovations, espe- The report advocates for the development of climate-smart
cially in health and agricultural insurance, are needed to insurance solutions, tailored to MSMEs' specific needs. Such
extend coverage to millions of unprotected people. insurance could play a pivotal role in building climate resil-
ience by providing financial protection and reducing liabili-
Moreover, digital tools and mobile-based platforms have ties for both businesses and governments. In addition, it
played a critical role in scaling inclusive insurance in devel- stresses the importance of public-private partnerships and
oping countries, particularly in rural areas. These tools make collaboration with financial institutions to enhance the ca-
it easier for underserved populations to access financial prod- pacity of MSMEs to manage climate-related risks.
ucts through mobile wallets, reducing operational costs for
insurers. Despite this progress, affordability, financial lit- The Landscape of Microinsurance: Bridg-
eracy, and weak infrastructure continue to hinder greater ing Gaps, Building Futures
adoption.
This 2023 report by the Microinsurance Network provides a

Landscape of Climate Risk Insurance So- comprehensive overview of the microinsurance industry,
covering 1,040 products offered by 294 insurers across Af-
lutions for MSMEs in V20 Countries rica, Asia, and Latin America. Microinsurance has shown
The 2024 report by the V20 Sustainable Insurance Facility immense potential in protecting low-income populations,
and UNEP focuses on the vulnerability of MSMEs (Micro, particularly in regions with weak social safety nets. By pro-

36 October 2024 The Insurance Times