Emerging markets in microinsurance
August 2009
How to establish a foothold in the new market segment serving low-income customers

Low-income households feel the impact of adversity more heavily than most in society, yet have little access to affordable insurance products that could help to protect them. However, as insurance providers become increasingly aware of this unmet need, a new microinsurance industry is emerging. To gain a foothold in this market, insurers need to confront a number of challenges: what is the most appropriate operating model for this low-margin, high-volume segment? What type of products do low income consumers want? How can insurance products be distributed in a previously unserved market? Insurers that succeed in overcoming these challenges have the opportunity to tap a potentially vast new source of profit.