Microinsurance saw a 50% rise in collected premiums since 2021, according to t
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"'The Landscape of Microinsurance 2024' data reveals that microinsurance products typically take about three to four years to reach considerable growth, and even longer to reach profitability. But when they do, they generate higher customer retention and premium growth," said Karimi Nthiga, the Microinsurance Network's regional coordinator for Africa. "For insurance, therefore, it's paramount that you invest and have the willingness to invest in long-term, sustainable models that will result in growth. If you do that, then growth is inevitable."
Despite growth in the microinsurance sector, there is still a protection gap that exists. According to the report, there are an estimated 3 billion people who could benefit from microinsurance coverage–about $41 billion in premiums. Only 12% of this population is covered. The Microinsurance Network emphasizes that this underserved market represents a significant opportunity for insurers to address the protection gap.
"One of the ways to do that is diversifying products. Diversify your product offerings to create opportunities for providers to further expand microinsurance portfolios to cover a wide range of customer risks. Microinsurance represents one of the greatest untapped opportunities in the insurance industry today, offering a tremendous market opportunity for those willing to embrace innovation, scale sustainable models and respond to the real needs of millions of the underserved population," said Nthiga. "Just to reiterate, microinsurance is indeed a profitable long-term investment that the industry can take advantage of to close the protection gap."
