ClydeCo-Resilience-Inclusive Insurance Report


Creating newmarkets

Inclusive insurance aims to extend insurance protection to un- or underserved customers, primarily in emerging economies, thereby increasing resilience, and also providing insurers with a potentially large market for their products. Almost two thirds (62%) of participants in a January 2018 survey by the Institute of International Finance saw the rise of the middle class in emerging market economies as one of the key factors motivating their development of inclusive insurance services. 5 Hannah Grant from A2ii , the Access to Insurance Initiative a global initiative created by IAIS and the Microinsurance Network that facilitates knowledge- sharing and provides guidance to insurance policymakers, regulators and supervisors, feels there has “definitely been a lot of interest from commercial players in the last few years. Commercial insurers are seeing there is a good business case and an opportunity to perhaps diversify their portfolio. Technology, particularly mobile phones – has been a game changer as it has reduced administrative overheads.”

In emerging economies inclusive insurance has become increasingly possible due to: –– The ongoing movement of populations from low to middle income –– The current digital revolution driving incremental costs down –– The growing awareness amongst governments regarding the national interest benefits of protecting emergent middle classes As Garance Wattez-Richard, Head of Emerging Customers, AXA points out: “From a macroeconomic standpoint, the business case is fueled by an unprecedented demographic shift in Asia and beyond, bringing hundreds of millions from low to middle income and triggering a significant demand for protection. Planets are aligning because this emerging middle class is also increasingly connected through the digital revolution, creating a scalable access gateway. Digital technologies enable us to drive the incremental cost down by one more zero.”


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