Micro insurance is a type of insurance product that provides coverage for low-income individuals and communities who have limited access to traditional insurance services. It is designed to be affordable and accessible to people who may not have the means or resources to obtain conventional insurance policies.

The key features of micro insurance include:

Low premiums: Micro insurance policies typically have very low premiums, making them affordable for low-income individuals and households.

Simplified products: Micro insurance products are designed to be simple and easy to understand, with minimal documentation and paperwork.

Targeted coverage: Micro insurance policies focus on risks and needs that are specific to the target population, such as natural disasters, health emergencies, or livestock loss.

Innovative distribution channels: Micro insurance is often distributed through alternative channels, such as microfinance institutions, cooperatives, or community-based organizations, to reach the underserved population. Customized to local needs: Micro insurance products are tailored to the specific needs and challenges faced by the local community, taking into account their socioeconomic and cultural context.

The primary goal of micro insurance is to provide financial protection and risk management solutions to low-income individuals and communities who are typically excluded from traditional insurance markets. It aims to improve the financial resilience and overall well-being of these populations by offering them access to affordable and relevant insurance coverage.

Micro insurance has gained traction in many developing countries, where it has been used to address various risks and vulnerabilities faced by the underserved population, such as health emergencies, agricultural risks, and natural disasters. Its growth and success have been driven by the collaboration between insurance providers, microfinance institutions, and community-based organizations