Microinsurance represents a dynamic and growing opportunity for insurers and distributors worldwide as new geographic and customer market segments emerge.  While microinsurance is generally an emerging market phenomenon, developments elsewhere may lead to increasing opportunity for both carriers and distributors in the U.S.

Microinsurance typically involves simple property-casualty and life-related micro products with very small premiums for the working poor who are emerging from or hovering near severe poverty. These people depend on assets such as livestock, agricultural crops, small businesses or sole wage earnings; if they lose them, then they will slip back into severe poverty without a clear path to recovery.

Because it is difficult to achieve high profit margins, efficiency and scale are hallmarks of distributing micro-insurance. Low premiums, far-flung communities and the high number of insureds have made this market difficult for agents and brokers to serve. This has resulted in the emergence of alternative distribution approaches, such as using non-governmental community organizations, large banks or other commercial and non-commercial partners.