General insurance Micro insurance; its benefits and its benefits

[Phabbyfundz]

A growing number of insurers are tapping into markets in developing countries through micro insurance projects, which provides low cost insurance to individuals generally not covered by traditional insurance or government programs.
Micro insurance products tend to be much less costly than traditional insurance products and the extends protection to a much wider market. The approach an outgrowth of the micro financing projects provided by bangladeshi Nobel price winning banker and economists Mohammad yunus which helped millions low in com earning individuals in Asia and Africa to set up businesses.
With limited growth prospect in insurance markets of developed countries, which are largely saturated, insurers see micro insurance in emerging economies as representing significant potential go growth and profitability.
A 2009 swiss report on world insurance market found that premium growth in emerging market outpaced growth in industrialized countries.

 

[Mandy96]

One of the advantages of micro insurance is the price. It is much lesser than the regular policies. Buying this kind of plan means you are trying to save up some money for the sake of over spending. This is obviously made for people in the rural area and the commoners

 

[Chibson]

A lot of people will prefer micro insurance in this part of the world because it is less costly and even an average person can purchase a premium. A disadvantage is the that it doesn't cover much and can only assist ensurers in a very little way. Micro insurance will be more beneficial in developing countries.

 

[Wisdom01]

Thanks for the article , but I would like to ask that what are the risks that the micro insurance would likely cover , because since it's micro and it's been said that low premium would be paid by the insurer , I really do want to know the exact difference between the micro and traditional type

 

[btaliat]

Though this insurance policy is very cheap according to the poster, it means the scope that it will cover, I don't know this as well because the poster didn't make mention some of the aspects the micro insurance will cover, will be low as well because insurance company are also profit oriented.