Until insurtech, insurance companies were defining microinsurance policies as social responsibility projects. With the magic touch of technology, the picture is changing rapidly!
Microinsurance is a type of micro financial activity, which protects low-income people and communities with low premiums and limited coverages against risks. The main objective is providing financial protection for all low-income members with pooling risks and financial resources. The target customer group is quite big, as well. More than 2 billion people are potential customers of micro insurance worldwide.
Microinsurance enhances financial security and peace of mind, supports social security systems in poor or developing countries and provides a high-level risk management system. For long-term investors, microinsurance stabilizes and develops financial markets in developing and poor countries and provides considerable liquidity for critical times.