Responsible Finance Forum

The Landscape of Microinsurance in Latin America and the Caribbean

11 November 2015
Source:  Microinsurance Network
 
 Munich Re Foundation

With the present study, the Microinsurance Network’s World Map of Microinsurance has identified the details of microinsurance activities in Latin America and the Caribbean (LAC) as of 2013. The study analyses comprehensive data from almost 100 insurance companies in LAC. These companies together manage over 200 microinsurance products with USD 828 million in premiums, and cover almost 8% (or 48.6 million people) of the total population of the region. As a comprehensive understanding of the environment in which insurers operate is crucial to the sustainability of the micro- insurance sector, this study focuses on their needs, providing valuable and actionable market intelligence of emerging trends and vibrant shifts in the various markets throughout the region.

Initial indications are that microinsurance can be proftable; the LAC market is dynamic and is displaying new growth areas. Companies that offer microinsur-ance report that microinsurance gross written premiums (GWP) account for an average of 1.7% of their total written premiums. Though premium growth on an aggregate comparative basis from 2011 to 2013 was just 3% across the region, when excluding Brazil microinsurance premium growth was about 33% over the two-year period. Claims ratios across product lines have a weighted average of about 26%, consistent with the data collected in 2011.