Cost and low awareness limit health and life insurance uptake

Globally, China and India lead insurance usage.

Insurance remains one of the least developed parts of financial inclusion in emerging economies, even as digital payments and savings products continue to grow, a study from the Geneva Association says.

Protection gaps remain large, particularly in health, disability, savings-type life and property insurance.

Medical costs are the biggest financial concern in almost all surveyed markets, reflecting limited social protection and high out-of-pocket expenses. 

Familiarity with insurance is highest in China, India and South Africa, helped by digital platforms, state-led programmes and established cultural practices such as funeral policies.

China and India also lead insurance usage, with about three-quarters of respondents holding at least one policy. 

Borrowing is the least used financial service across all countries, largely due to mistrust of lenders and a lack of credit history.

Cost is the main barrier to health and life insurance, whilst lack of knowledge holds back demand for savings-type life products. 

Many households also say insurance is not a priority or that they do not fully understand its relevance.

The study notes that inclusive insurance can help households absorb shocks (such as illness, accidents or natural disasters) without falling into poverty. 

It also supports business activity by reducing financial risk.

The Geneva Association says three areas must work together to close protection gaps: commercial innovation, public policy and regulation. 

It highlights simple products, digital distribution, affinity partnerships and parametric insurance as key commercial solutions. 

It also points to government subsidies, digital identity systems and insurance education as critical policy tools.

Regulators are encouraged to enable innovation through simplified licences, digital onboarding rules and sandbox frameworks, whilst maintaining consumer protection.

According to the study, emerging economies have an opportunity to expand insurance coverage rapidly by combining digital tools, public-private partnerships and supportive regulations.

The report covers seven markets: Brazil, China, India, Mexico, Morocco, South Africa and Türkiye. It shows that more than 1.3 billion adults worldwide still lack access to formal financial services.