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Ten years, eight trends: Where does inclusive insurance go from here?

Emerging Insight #:


Date of Release:

  November 21, 2018


  Impact, Composite products


  The Facility and Cenfri

Joint reflections from ILO’s Impact Insurance Facility and Cenfri

The ILO’s Impact Insurance Facility turned 10 this year, along with our close partner, Cenfri. Together we have taken stock of progress made over the last decade and, most importantly, what needs to come next.
The world of risk is changing and insurance matters more than ever. The last 10 years have seen a significant uptake of insurance by emerging consumers, driven by large aggregators like banks, microfinance institutions, mobile network operators, and retailers. However, products offered through these channels typically meet the needs of these aggregators, while value for clients remains elusive.
Insurance markets typically evolve through different stages of development. Most developing countries are stuck in the second stage (see graphic below), with group and bundled products that offer limited choice. New technologies and the availability of data present opportunities to deepen voluntary use for those who can afford to pay. Another important development is that governments have an increasingly important role as enablers and providers of insurance services, including paying for premiums for those cannot afford it.

Figure: Stages of market development
In the coming decade, we expect to see more integrated risk management solutions – combining savings, credit and insurance – to offer greater value for consumers and small businesses. At the same time, a changing provider landscape may threaten the role of insurers, forcing them to adapt their business models and form partnerships with new digital players.
Market facilitation remains imperative to guide and support efforts to improve supply, stimulate demand and ensure that regulations evolve with the market. Without establishing a broader facilitative environment, innovations may be short-lived, not achieve scale or offer poor value.
To learn more about these trends, see Ten years, eight trends: Where does inclusive insurance go from here?