A report from the Geneva Association highlights the need for affordable insurance to address financial inclusion challenges in emerging economies.  

The think tank cites survey findings from China, India, Mexico, Morocco, South Africa and Turkiye showing the vulnerability of households and small businesses amid a growing gap between customers’ appetite for insurance and their ability to buy it.  

Those in China and India were most likely to be insured, with more than 70% of respondents in both countries having some form of cover. The report says access to digital payment systems is a key factor driving purchases.  

Less than 60% of respondents in South Africa had cover, but more than 87% said insurance is helpful. 

Overall, more than 70% of respondents across all countries considered insurance a useful product. 

Among the uninsured in all nations, 60% said they had access to cover but affordability, knowledge gaps and low priority held them back.  

According to Swiss Re, the surveyed countries account for 60% of the global protection gap in crop, property, life and health insurance. They represent only 20% of global premium.  

Geneva Association MD Jad Ariss says a lack of access to affordable insurance is driving wealth inequality.  

“Insurance provides stability where savings and credit fall short – protecting households from shocks that can erase years of progress,” he said. “To drive inclusive growth, we must close protection gaps and make insurance affordable at scale, especially for low-income and underserved communities.”  

The report encourages insurers to develop understandable products that are accessible through digital embeds and human-based systems.  

It also calls on governments to embed insurance into national development agendas, either through mandatory schemes or programs such as subsidies, tax incentives and public guarantees.  

See the report here.