Microinsurance coverage reaches 344 million people in 2023, 88% protection gap persists

Microinsurance coverage reaches 344 million people in 2023, 88% protection gap persists

Member Press Release • The Microinsurance Network

Despite strong growth in microinsurance, 9 out of 10 people globally remain unprotected from rising risks—including climate change, health crises, disasters, conflict, and nature loss—according to findings from ‘The Landscape of Microinsurance 2024’ report. Insurers, policymakers, and development agencies must expand access, enhance affordability and gender-inclusivity, drive long-term market sustainability, and close the protection gap.

Luxembourg, 6 March 2025 – The Microinsurance Network (MiN), in collaboration with the United Nations Development Programme’s Insurance and Risk Finance Facility (UNDP IRFF), released the report ‘The Landscape of Microinsurance 2024’ today. The report provides the most comprehensive analysis of global microinsurance markets, drawing on data from 294 insurers across 37 countries in Africa, Latin America & the Caribbean, and Asia & the Pacific region, covering 985 microinsurance products offered in 2023.

With support from Luxembourg’s Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, Luxembourg’s Ministry of Finance, AXA EssentiaALL, Munich Re Foundation, Barents Re, Swiss Re Foundation, AON Philippines, and the Insurance Federation of Egypt, the report demonstrates that microinsurance is increasingly used as a tool to build financial resilience, particularly in response to climate risks, economic shocks, and health-related uncertainties.

This unique benchmark report reveals that the number of people covered by the reported products has increased by 70% over the past three years, reaching 344 million across 37 countries in three regions. For the year 2023, these products generated USD 6.2 billion in written premiums. The report’s findings deliver critical insights for policymakers, insurers, donors, and development agencies focused on increasing financial protection for low-income populations.

Key Findings from The Landscape of Microinsurance Report

• Significant market growth: Microinsurance coverage has increased by 70% across 37 countries in the past three years, with a 50% rise in premiums collected since 2021.
• Climate risk coverage expands: 112 products offer climate-related protection, reaching 42 million people.
• Huge potential market: The market for microinsurance in the 37 countries included in this study is estimated at almost 3 billion people, representing approximately USD 41 billion in microinsurance premiums.
• Protection gap remains a challenge: Only 12% of the estimated 3 billion people who could benefit from microinsurance are currently covered.
• Gender-inclusive insurance needs improvement: While 48% of microinsurance policyholders are women, better gender-disaggregated data is required to tailor products effectively.
• The role of subsidies: For the first time in the Landscape study, data was collected on premium subsidies, revealing their central role in agriculture insurance, where 58% of products receive some subsidy. This underscores the opportunity for subsidies to accelerate the development of other product lines, such as property and income insurance.

Lorenzo Chan, President and CEO of Pioneer Inc. and Chair of the Microinsurance Network Board, underscored the importance of long-term investment and product innovation:

“Microinsurance continues to grow, but sustained investment is needed to improve scale and sustainability. We applaud the significant strides that the Landscape of Microinsurance has made so far, reflecting the industry’s commitment to expanding financial protection for underserved communities. However, momentum must continue. Insurance providers and distributors should focus on developing products that address evolving needs while ensuring simplicity, affordability and accessibility. We also urge improvements to claims ratios and payment times, which are critical to earning the trust of vulnerable communities.”

Matthew Genazzini, Executive Director of the Microinsurance Network, emphasised collaboration between stakeholders:

“To expand microinsurance coverage, public-private partnerships are crucial to facilitating scale and reaching the most vulnerable. Governments and insurers must work together on targeted subsidies to support risks that low-income households cannot afford on their own, particularly climate risks. At the same time, improving data systems and sharing will foster market competition, ultimately leading to more innovative and sustainable microinsurance solutions. By working collectively, we can enhance affordability, accessibility, and trust in microinsurance, ensuring it meets the evolving needs of those who need it most.”

Jan Kellet, Special Advisor, UNDP Insurance and Risk Finance Facility, highlighted the broader development impact:

“The findings of this study make it clear — insurance must be embedded in national development strategies to strengthen resilience at both the micro and macro levels. Governments, insurers, and donors must act now to scale insurance markets, develop supportive regulatory frameworks, and drive public-private partnerships — particularly in high-demand areas like health and climate risk. This is not a short-term fix but a long-term commitment to financial inclusion and sustainable protection, both of which are critical to long-term resilience and growth of communities and countries everywhere. The data from this study provides a critical foundation for accelerating action and closing the protection gap for those most at risk.”

Saurabh Sharma, Insurance for Development Specialist, UNDP Insurance and Risk Finance Facility, highlighted the broader development impact:

“UNDP strongly believes that inclusive insurance is a key enabler of resilience, helping communities withstand climate shocks and economic instability. Closing the protection gap requires scaling innovative solutions and integrating insurance with broader risk reduction efforts. To support this, the insights from this report are critical for strengthening markets and shaping policies that ensure financial protection reaches those who need it most.”