Growth seen in microinsurance
The past five years have seen a dramatic increase in the development of micro-insurance schemes, according to new research released this month.
The research, conducted by the Microinsurance Innovation Facility within the International Labor Organisation and the Munich Re Foundation, found the number of microinsurance schemes worldwide had increased over the past half-decade to reach 500 million worldwide.
"Since 2008, we have seen numerous innovations emerging to overcome the challenges of providing viable insurance services to more low-income people," the chair of the Microinsurance Network, Craig Churchill said.
"Efforts now should focus on increasing effectiveness so that insurance products can successfully reduce their vulnerability," he said.
The research showed that Asia - with its two microinsurance powerhouses of China and India - was spearheading the trend and covering roughly 80 per cent of the market.
It estimated that 60 per cent of people around the world who are covered by microinsurance live in India.
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