Technavio Announces Top Five Vendors in the Global Microinsurance Market from 2016 to 2020

According to Technavio researchers, developing markets such as China, India, Thailand, and Nigeria exhibit a vast opportunity for microinsurance companies to penetrate into. For instance, Africa is expected to generate 50%-55% of the revenue on a global scale by 2020, which highlights the vast job opportunities from an investment perspective. Many developing countries have 50%-60% of the population in the lower income groups that remain unserved or underserved. These population groups continually expand at a rapid pace. Overcoming these market hurdles like stringent capital norms and difficulty in credit assessment of the insured are the biggest challenge.

Amit Sharma, a lead research analyst at Technavio, says, “It is important to focus on the quality of the target market infrastructure, political stability, and managing operational costs. For example, 40% of global microenterprises do not perceive Africa as a growth opportunity destination despite a positive economic growth and a large number of lower income people. The growth of the nominal GDP in these developing countries is largely driven by the micropopulation segment. Hence, a boost in the GDP of these countries indicates growth in these segments, creating more opportunities.”

AIC is a major player in the insurance sector in Haiti. The company provides multiline insurance products and services. It is focused on providing auto, homeowners, commercial, life, group health, funeral, and microinsurance products to low-income people, professionals, as well as for medium, small, and large organizations and companies located in Haiti.

The company is looking into the following strategic initiatives for future growth opportunities:

Bajaj Allianz offers health insurance, life insurance, and pension products for customers in India. The company functions through non-participating, participating, and linked segments. The company focuses on providing term insurance plans, investment insurance plans, savings plans, retirement plans, ULIP, group insurance plans, child insurance plans, and rider products. It has approximately 708 offices located in various cities in India, along with a solvency ratio of 797% and claim settlement ratio of 96.66%.

The company is looking into the following strategic initiatives for future growth opportunities:

IFFCO Tokio General Insurance offers customized insurance products that cover small-scale farmers. The company has a strong presence PAN India with its 69 strategic business units (SBUs), more than 124 lateral spread centers (LSCs), and 295 Bima Kendras.

The company is looking into the following strategic initiatives for future growth opportunities:

Mapfre, with its business in 47 countries on five continents, offers insurance products to customers worldwide. It also has 5,848 offices and distributes its products via 8,932 branches of banking institutions and other sales points.

Mapfre US (a subsidiary) provides casualty and property insurance along with reinsurance services to clients in the US. At present, it functions in 19 states in the country through a network of over 4,200 independent agents and brokers. The company is also focused on offering various insurance products such as coverage for homes, automobiles, watercraft and businesses, motorcycles, along with term life insurance.

Pioneer Life is part of Pioneer Group and offers insurance products across the Philippines. The company functions with a strong and extensive network of 19 branch offices that includes eight shared offices with Pioneer Insurance.

The company focuses on the following strategic initiatives for future growth opportunities:

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.