By Henry Uche
Micro Insurance Network has called on Nigerian government along side other African leaders on the need to bridge the protection insurance gap for a more financial inclusion drive through micro insurance.
The Micro insurance Network is the global multi-stakeholder platform for professionals and organisations that are committed to making insurance inclusive.
In The Landscape of Micro insurance 2023 report, the Network said in terms of micro insurance outreach and penetration, the results of its study point to a significant market opportunity for insurers in the region, alongside a pressing need for governments to consider the need to close the substantial protection gap as a key enabler to meet wider development agendas.
“In a world of rising risks, micro insurance is a vital tool to build financial resilience as it helps individuals, small businesses and farmers manage the financial impacts of unexpected events, such as an illness, death, loss of income or natural hazards.
“The 2023 edition of The Landscape of Microinsurance has collected a record participation of 294 insurance providers in 36 countries, finding that up to 330 million people were covered by micro insurance products in 2022. This represents up to 11.5% of the population that could benefit from micro insurance in the countries covered in this study, what the report terms the ‘micro insurance target population.’
According to the Group, as premium collection remains an important challenge for insurance companies, the further advancement of banking penetration, digitisation of value chain finance – especially for smallholder farmers, and increased adoption and usage of mobile financial services, should also result in facilitating micro insurance uptake.
More so, they affirmed that the Landscape of Microinsurance brings together the most extensive micro insurance data to date, providing critical market knowledge to enable informed decision making among insurance providers, policymakers, and development actors.
“Governments are called on for their support, as the countries where insurance supervisors and associations promote The Landscape Study during the data collection period observe higher participation rates which leads to greater market intelligence.
“With the sobering knowledge that only approximately 1 in 10 people have any insurance in a world of rising risks, innovative product design and distribution will be instrumental to the sector’s growth along with more efficient and scalable processes like claims payment.
“Collaboration and progress on these critical next steps will enable the micro insurance sector to grow and create urgently needed pathways for communities and governments to financially manage their multiplying risks.”
In line with its mandate, they reiterated commitment to building a world where people of all income levels are more resilient and less vulnerable to daily and catastrophic risks through improved access to effective risk management tools, including insurance services.
Moreover, information sharing and stakeholder coordination with the aim to promote the development and proliferation of insurance products for people un(der)served by insurance, remains a top priority.
“We brings together diverse stakeholders from across the value chain who share our vision of a world where people of all income levels are more resilient and less vulnerable to daily and catastrophic risks.
“We encourage peer-to-peer exchange and learning, facilitate the generation of knowledge and research, and act as advocates, promoting the role that effective risk management tools, including insurance, play in supporting the broader development agenda,” they stressed.