Introduction Governments and organizations around the world are increasingly calling for the facilitation of inclusive insurance. This refers to insurance products and services specifically designed to meet the needs of socioeconomically vulnerable populations, such as low-income individuals, socially disadvantaged groups, and micro- and small enterprises, who often face barriers to accessing traditional insurance. These products aim to enhance financial resilience and promote broader financial inclusion by offering affordable and accessible coverage options. Encouraged by the promising growth of inclusive insurance markets in developing countries, international insurers are accelerating efforts to expand their global presence. In advanced economies, stakeholders are using inclusive insurance as a tool to address blind spots in social security systems. To promote inclusive insurance in the insurance market of the Republic of Korea, insurers must enhance access for vulnerable groups and design customized insurance products. They should also pursue overseas expansion through equity investments and strategic partnerships. Financial authorities must explore a wide range of policy measures to further advance this measure. Analysis Despite its potential to support the economic stability of vulnerable populations by covering illness, death, disasters, and other life events, inclusive insurance has not yet gained widespread adoption in the Republic of Korea. Limited financial means, a lack of reliable statistical data, and insurers' concerns over potential large losses have contributed to low participation among target groups. Traditional policy measures, such as loans, subsidies, and debt relief, have limitations in supporting the economic self-sufficiency of vulnerable groups. Inclusive insurance, by offering affordable premiums and appropriate compensation, can serve as a more efficient tool to promote financial security. Many international insurers identified the growth potential of inclusive insurance markets in developing countries early on, especially in regions with underdeveloped social security systems such as Africa, Latin America, and Southeast Asia, and have since accelerated global expansion. Currently, around 330 million people, or 11.5% of the population across 36 countries in Africa, Asia, and Latin America, hold inclusive insurance products[1]. The widespread adoption of mobile devices and improved internet infrastructure in these regions, driven by economic growth and increased access to financial services, continues to boost subscription rates[2]. For example, in 2014, German insurance giant Allianz partnered with MicroEnsure[3], a company offering microinsurance to low-income populations, to launch a mobile-based life insurance product in Madagascar[4]. In 2017, Allianz invested $96.6 million to become the largest shareholder in BIMA[5], an insurtech company specializing in microinsurance. In 2015, nine global insurers—including AIG, Zurich, and Aspen—formed a consortium called Blue Marble Microinsurance to provide weather insurance, health coverage, and income protection for small businesses in underserved markets across Africa, Latin America, and Southeast Asia[6]. In 2016, French insurance leader AXA launched a dedicated division called AXA Emerging Customers, which offers digital microinsurance products in collaboration with local financial institutions and mobile network operators in developing countries[7]. In 2016, AXA acquired a 46% stake in MicroEnsure to further accelerate its global expansion. In advanced economies, inclusive insurance has become a key tool for addressing gaps in social protection systems, especially as economic crises—such as the global financial crisis and the COVID-19 pandemic—have widened the insurance coverage gap across socioeconomic groups. A 2024 survey by the Geneva Association of over 28,000 households across the G7 nations (France, Germany, Italy, Japan, Spain, United Kingdom, and United States) found that 85% of respondents held at least one insurance policy, excluding mandatory insurance. However, only around 52% of low-income households had insurance coverage. In the United States, insurtech firm Oscar Health uses AI-powered data analytics to offer personalized health insurance for low-income individuals. In Europe, AXA provides AXA EssentiALL, a tailored insurance product for low-income earners and small-scale entrepreneurs. In Japan, Meiji Yasuda Life Insurance offers the Simple Insurance Series Light!, which delivers affordable, easy-to-subscribe micro-coverage for vulnerable populations in areas such as death, health, and long-term care[8]. Implications Inclusive insurance not only fosters greater social inclusion and equity but also establishes a sustainable growth engine by generating new revenue streams for insurers. Insurers can fulfill their social responsibilities related to the 'S' in ESG (Environmental, Social, and Governance) by serving marginalized customer groups. This enhances their reputation, attracts ESG-conscious consumers and investors, and boosts market share and profitability. Global expansion through inclusive insurance also enables insurers to move beyond the saturated domestic market and explore new opportunities, especially as inclusive insurance markets in developing countries continue to grow. To advance inclusive insurance, insurers must improve access for vulnerable groups, offer affordable, tailored products that meet their specific needs, and raise awareness through education programs. They should also pursue overseas expansion through equity investments and strategic partnerships. Since socially vulnerable groups often face limited access to digital platforms, insurers must develop user-friendly platforms and mobile apps tailored to these customers. By leveraging insurtech, insurers can increase cost efficiency in product development, underwriting, and claims payments, enabling them to offer lower premiums. Technologies such as AI and big data can help insurers better understand customer needs and create personalized products and services. Additionally, insurers must provide customized financial and insurance education programs or counseling services to help vulnerable groups understand how inclusive insurance can support their risk management. This is crucial, as low insurance literacy and limited risk awareness can hinder adoption. Korean insurers aiming to enter global inclusive insurance markets[9] must adopt best international practices. invest in specialized insurtech firms or form strategic partnerships with local financial institutions, mobile network operators, and governments to facilitate market entry. To reduce the financial burden on vulnerable groups and expand access, financial authorities must implement premium subsidy programs and explore a broad range of policy support measures, such as tax incentives for insurers, bond issuance for capital raising, and regulatory sandboxes to foster an environment where insurers and insurtech companies can test and develop innovative inclusive insurance products and services. Authorities should also introduce incentive measures to encourage the sale of inclusive insurance products. These could include incorporating insurers’ engagement with inclusive insurance into the Risk Assessment and Application System (RAAS) and offering tax incentives or other benefits to high-performing insurers. Furthermore, financial authorities must enable insurers to raise necessary funds, such as through bond issuance, to support equity investments and other activities related to global expansion. [1] Micro Insurance Network. 2023. The Landscape of Microinsurance 2023. [2] Geneva Association. 2024. Inclusive Insurance in Advanced Economies: Alleviating Strains on Society. [3] MicroEnsure, a UK-based digital microinsurance company, primarily provided tailored insurance products and services to low-income populations in Africa and Asia. In 2020, the company merged with TonkaBI and STP Group to form MIC Global. [4] Allianz SE. 2014. Microinsurance at Allianz Group: 2014 Full Year Report. [5] BIMA is a Sweden-based insurtech company that offers affordable insurance products providing death and injury coverage through a mobile application tailored for low-income customers across Africa, South America, and Asia. [6] The Royal Gazette. 2015. Insurance industry can roll with Blue Marble. 12 November. [7] T. Buberl. 2025. AXA‘s CEO on Insurance as a Tool to Drive Positive Impact. Harvard Business Review. [8] Meiji Yasuda Life Insurance. 2017. Annual Report 2017. [9] The current Insurance Business Act (Article 114-2) only allows insurers to borrow external funds for the purpose of meeting financial soundness standards or maintaining adequate liquidity. However, there are no specific regulations regarding the issuance of bonds in other financial sectors. Ask the Experts Sangyong Han Research Fellow, Insurance and Pension Division, Korea Institute of Finance Sangyong Han has been a Research Fellow in the Insurance and Pension Division at the Korea Institute of Finance since 2022. He earned his Ph.D. in Finance from Washington State University, where his dissertation examined managerial behavior in risk-taking and reserve management within insurance companies. His primary research interests include risk management, insurance, and corporate finance, with additional interests in insurance management, executive compensation, and corporate governance. Korea Institute of Finance (KIF) The Korea Institute of Finance provides expert analysis for the development of the Republic of Korea's financial sector and financial policy. Leave your question or comment in the section below: View the discussion thread.