Microinsurance is a form of insurance designed especially for low- and middle-income consumers in emerging markets.
Microinsurance products are usually characterised by small premiums, simple features, and benefits tailored to emerging customers’ needs.
Microinsurance requires a different approach to business process and technology; most underwriting is done at the time of claim, rather than at the time of purchase. Individual risks, such as pre-existing medical conditions, are priced into the product rather than excluded from coverage. As a result, microinsurance is uniquely designed to operate at scale; rather than providing $1,000,000 coverage to 1,000 people as in traditional insurance, microinsurance provides $1,000 coverage to 1,000,000 people.