Microinsurance: Key market research findings
- Consolidation drives market growth
- Increasing focus on the establishment of a flexible, cost-effective model
- Key vendors – AIC, Bajaj Allianz, IFFCO Tokio General Insurance, Mapfre, and Pioneer Life
Technavio’s market research analysts predict the global microinsurance market to grow at a CAGR of over 8% between 2016 and 2020. Increasing consolidation in the industry is the primary driver for growth in the market. The demand for microinsurance services depends on the customer’s income and company’s business activity. The growth of an economy stimulates a rise in consumer income and business activity, creating demand for insurance products. As a result, microinsurance firms are expected to expand their distribution channels by working with local players in the region. During 2015, the APAC accounted for more than 79% of the overall market share to dominate the global microinsurance market. The flourishing of the market in this region is augmented by factors such as improving national economies, increasing low-income population, and regulatory and legislative evolution. Rising demand for quality healthcare and medical tourism and risk-based capital framework (RBC) are expected to boost growth in the microinsurance market in APAC during the forecast period.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“The leveraging of social media by numerous vendors for improved market penetration is an ongoing trend in the market. A social media-oriented approach is estimated to broaden the communication and marketing channels that are essential for the launch of new products and services. Many microinsurance companies make use of social media platforms to gather customer feedback, resolve queries in real-time, provide product updates, and as a means to drive insight generation and fraud investigation. Internet-based strategies also make it possible to overcome geographical limitations,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.
The market is currently witnessing the development of microinsurance, health microinsurance, and various kinds of agricultural insurance. Life insurance companies are implementing professional and disciplined backing practices to ensure healthy growth in emerging markets such as Southeast Asia. Furthermore, the capital management of the life insurance market is expected to support vendors’ growth and tighten solvency capital requirements. Vendors are focusing on establishing a more flexible and cost-effective business and operating models to gain market shares.
The key vendors in the market include AIC, Bajaj Allianz, IFFCO Tokio General Insurance, Mapfre, and Pioneer Life. The developing markets such as China, India, Thailand, and Nigeria possess immense growth opportunities for microinsurance companies to increase their penetration into different market segments. Vendors in the market are focusing on the quality of the target market infrastructure, political stability, and managing well operational costs. Several microinsurance companies are increasingly adopting automated portfolio monitoring, which keeps them updated about the credit flow of their client segment and allows them to take appropriate steps with immediate effect. This helps the microinsurance companies to minimize their risks and propel better revenues and profits.
A more detailed analysis is available in the Technavio report, Global Microinsurance Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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