Geneva Association Study Highlights Insurance Gaps in Emerging Economies

Insurance remains underdeveloped in emerging economies despite growth in digital payment and savings products, according to a recent Geneva Association study. Significant security gaps exist in health, disability, savings-type life, and property insurance across surveyed markets, highlighting limited financial protection for many populations. Medical expenses are the top financial concern, exacerbated by limited social security systems and high out-of-pocket costs. Awareness and usage of insurance are highest in China, India, and South Africa, driven by cultural factors such as digital platforms, government initiatives, and traditional policies like funeral insurance. Nevertheless, credit services remain the least utilized financial product across all markets due to trust issues and lack of credit history. Cost and information barriers particularly affect the uptake of health and life insurance products. The study notes that many families do not prioritize insurance due to limited understanding of its benefits, despite evidence showing that inclusive insurance supports resilience against shocks like illness, accidents, and disasters. Inclusive insurance also facilitates business continuity by mitigating financial risks. Closing the insurance coverage gap requires coordinated efforts in business innovation, public policy, and regulatory frameworks. The Geneva Association highlights opportunities in simplified insurance products, digital distribution, affinity groups, and parametric insurance solutions. Policy measures such as government grants, digital identity systems, and insurance education are identified as critical enablers. Regulators are encouraged to foster innovation through streamlined licensing, digital onboarding, and sandbox frameworks while safeguarding consumer protection. The report emphasizes that emerging economies can significantly expand insurance coverage by leveraging digital tools, public-private partnerships, and supportive regulatory environments. The report surveys seven markets: Brazil, China, India, Mexico, Morocco, South Africa, and Turkey, revealing that over 1.3 billion adults globally are excluded from formal financial services. This underscores the urgent need for expanding insurance accessibility and developing inclusive financial systems in these regions.