From the Senior Vice President
In our October newsletter, I focused on the opportunities for telematics in China. This month, I'll travel about 11,000 miles west to switch focus to the market opportunity for microinsurance in Latin America. Such an eclectic mix; I guess that's the advantage of being a global analyst firm!
Ever since I first heard of microinsurance, I have been fascinated by it. Unencumbered by a legacy product and systems landscape, faced with consumers who are yet to be indoctrinated in the inherent complexity of the processes that we create for ourselves in developed markets, and faced with fierce cost pressures that demand simplicity, microinsurance provides a great platform to explore innovation. Propositions, distribution channels, and the supporting technologies all need to be simple, quick, and efficient. If you're a tier 1 insurer in a mature insurance market, do these requirements sound familiar?
In our latest report on microinsurance in Latin America, we explore the opportunities and practical implications of addressing this opportunity. The potential microinsurance market for Latin America is estimated at 360 million people, with Mexico and Brazil concentrating around 55% of the total. It is also a market that has been growing. In 2006 only 78 million risks were covered under microinsurance products in Asia, Africa, and Latin America, but by 2011 this number was over 500 million, Latin America representing 10% of that, and Asia having nearly 400 million risks covered. The opportunity is significant. If you're an insurer in a mature market who is wondering if microinsurance has anything to do with your business, I challenge you is to look at the market and see. We are hosting two webinars on the topic next week: one in English on December 18 and another in Spanish on December 19.
As this is my final message of 2013, I wish you all a successful end of the year and look forward to pushing out the frontiers of insurance technology in 2014. Happy holidays!
Senior Vice President, Insurance
P.S. The deadline for submitting a nomination for our 2014 Model Insurer Asia Awards is this Friday, December 13. The submission deadline for our 2014 Model Insurer Awards is Tuesday, December 31.
Chart of the Month
From the Celent report Microinsurance in Latin America: Disruption in Practice
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