Is micro-insurance a success?
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President Bill Clinton hailed micro-insurer LeapFrog Investments as the “Insurer to the Poor.” (And LeapFrog is now a $137 million micro-insurance fund.)
Micro-insurance is not a new idea, but on the heels of both greater awareness and investments, it is gaining steam. Is micro-insurance a success? Marik Brockman of PwC’s Diamond Advisory Services offers his opinion.
Marik Brockman: That’s a hard one to measure. I think there’s pockets of it. I think as a whole, it’s still in process. I think the fact that it’s already happening on this scale means it’s working and that it’s successful. I think the degree of success now is what we can look at. I think what will be really nice is to see the next generation – how do they look at it.
One immediate measure is when do we start cracking into a very large double-digit percentage of the addressable market and we’re not there yet. As we start to head into the couple hundred, three hundred, four hundred million range of micro-insured, you’re now going to have stratified distribution offerings where the market starts to take care of itself.
Then what’s going to be interesting I think is to watch the next generation come up. Do they just look at the world differently? Do they see the opportunity now as kind of a given and there’s just innovation run amok everywhere, and communities start to develop and we’re into the next generation. I think that’s a whole other wave of success that everyone will begin to enjoy.
