From microinsurance to inclusive insurance

Conceptual development

Globally, the development of the inclusive insurance market began in 2002, with the positioning of the importance of microinsurance in the framework of the Consultative Group to Assist the Poor (CGAP), housed at and administered by the World Bank, where the Microinsurance Working Group, now known as the Microinsurance Network, was created. Since 2015, The International Association of Insurance Supervisors (IAIS) changed the focus and broadened the concept beyond microinsurance, it considered inclusive insurance as “all insurance products aimed at the excluded or underserved market, rather than just those aimed at the poor or a narrow conception of the low-income market. In developing countries, the majority of the population often classifies as un- or underserved.”

What are they?

Inclusive insurance denotes the products that favor financial inclusion in insurance*, they are bought voluntarily by the policyholder and are intended for the excluded or underserved market, i.e., those who have never been covered by insurance; compulsory insurance is not considered inclusive insurance.

Additional links

Webinar – Promoting Inclusion in Insurance Markets.
This webinar presented lessons learned by three insurance associations in the region: the Mexican Association of Insurance Institutions (AMIS), the Colombian Insurers Association (Fasecolda), and the Salvadoran Association of Insurance Companies (ASES). They explored the keys to success in achieving efficient and effective coordination with the industry, the government, and the regulator, and in raising awareness of underserved segments about the importance of insurance. It was also discussed the topic of strengthening the companies’ capabilities in the development of products focused on customer needs.

*THE FINANCIAL SUPERINTENDENCE OF COLOMBIA, IN ITS 2019 FINANCIAL INCLUSION REPORT, DEFINED THE FOLLOWING LINES OF BUSINESS AS THOSE THAT FAVOR FINANCIAL INCLUSION IN INSURANCE, SINCE THEIR RISKS ARE MORE COMMON AND CAN BE MORE EASILY ACCESSED BY THE POPULATION: “INDIVIDUAL LIFE, DEBTOR GROUP LIFE, CREDIT LIFE INSURANCE, FUNERAL, PERSONAL ACCIDENTS, FIRE AND EARTHQUAKE, CROP AND LIVESTOCK, EXTRA-CONTRACTUAL LIABILITY, VEHICLE (MOTORCYCLE AND CAR), UNEMPLOYMENT, PERIODIC ECONOMIC BENEFITS (BEPS), HEALTH, THEFT, AND HOME”. (RIF, 2019. P. 138)