Insurance coverage balloons in African microinsurance markets

Use of microinsurance among low-income households in Africa has grown more than 200% in the last three years and now benefits upwards of 44 million people, notes a new study published by Making Finance Work for Africa (MFW4A) and the Munich Re Foundation.

The vast majority of Africans with insurance are covered by life insurance, but insurance products related to health, agriculture, accident and property are not as developed on the continent, which is inconsistent with demand, says Stefan Nalletamby, partnership coordinator of MFW4A. “This finding should drive the relevant stakeholders to take steps to address this shortcoming,” Nalletamby notes in a statement.

The study will be released during the 8^th International Microinsurance Conference in Tanzania from Nov. 6 to 8, which brings together more than 500 experts from about 60 countries to discuss the challenges and opportunities in microinsurance.

Of the 44 million insured people in Africa, more than 38 million are concentrated in southern and eastern Africa, with South Africa alone covering 27 million.

“With nearly 220 organizations providing microinsurance in Africa, the study clearly shows the rising interest in insuring the low-income market,” says Dirk Reinhard, vice chairman of Munich Re Foundation and a board member of the Microinsurance Network.

From a global perspective, the microinsurance sector is moving forward at considerable speed, the statement notes. In Latin America and the Caribbean, another recent study identified more than 40 million low-income people covered by microinsurance.