Potential for the Microinsurance Sector to Play An Important Role In Building the Population’s Resilience
In Mexico, the economic contraction, due to the pandemic, has hindered the fight against poverty. And, certain parts of the population (women, young people, the elderly, and those living in some coastal areas) still do not have access to adequate risk mitigation tools such as insurance. As a result, urgent action from the National Insurance and Bonding Commission (CNSF) and the Mexican Association of Insurance Institutions (AMIS), which has been discussed since 2008, is needed.
- Mexico is internationally renowned for its natural beauty and rich cultural heritage, making it the most popular tourist destination in the world in 2021.
- Due to its location between the Pacific and Atlantic Ocean, and its varied geography and climate, the country is exposed to climate risks such as hurricanes, earthquakes, floods, and volcanic eruptions.
- In 2020, around 9% of the inclusive insurance target population was covered by a microinsurance product. This lack of coverage has contributed to households falling back into poverty in Latin America’s second-richest country.
- If the demand and supply side of the microinsurance sector can be aligned, there is potential for it to play an important role in building the population’s resilience.
Table of Contents
Introduction
Context
Risk exposure
Enabling inclusive insurance market development
The current inclusive insurance landscape
- Identified microinsurance coverage
- Products
- Distribution
- Gender
- Claims
Opportunities and challenges
- Continue to develop regulations for inclusive insurance
- Gather information on the inclusive insurance market
- Raise awareness and educate people about inclusive insurance
- Explore opportunities for innovative product development
- Build strategic partnerships with other stakeholders
