Microinsurance provides affordable, small-ticket insurance products that cover specific risks, making coverage accessible to underserved populations.

What is Microinsurance?

• Microinsurance offers low-cost, customized coverage.

• It is designed for health, life, livestock, disability, and event-based coverage.

How Does Microinsurance Work?

• Instead of broad coverage, microinsurance targets specific risks.

• Popular in India, China, South Africa, and Brazil.

• Distributed through NGOs, self-help groups, and microfinance institutions.

Benefits of Microinsurance

• Affordable premiums make insurance accessible to low-income groups.

• Helps families protect valuable assets without high costs.

• Faster claims processing and greater transparency.

Microinsurance vs. Traditional Insurance

Challenges in Microinsurance Adoption

1. Lack of awareness – Many consumers don’t understand microinsurance products.

2. Short-term financial focus – Low-income families prioritize immediate expenses over future risks.

3. Low renewal rates – Many customers don’t renew microinsurance policies after one year.

Conclusion

Microinsurance is growing as a key tool for financial inclusion.

With advancements in IoT and InsurTech, microinsurance will soon become more accessible and mainstream.