There is global interest in microinsurance, Mr Kamal Tabaja, Group Chief Operating Officer of Bahrain-headquartered Trust Re, has said. However, there are challenges for insurers in this sector.
Mr Tabaja, speaking at the inaugural Sharm El-Sheikh Insurance and Reinsurance Rendezvous last month, pointed out that the challenges faced by insurers include the lack of information about the microinsurance sector, which costs insurance companies a lot to reach out to, reports Akhbar Elyom.
He said that the insurance industry is slow to penetrate this sector, despite the large number of people in it whose needs are not covered by any insurance coverage and who require microinsurance.
Yet, there is little information about the customers that microinsurance would target at, because this is mainly related to the level of income of individuals.
Still he is confident that the use of modern technology would help insurance companies know the target market.
He stressed the need for insurers to quickly pay compensation in the event of any damage without asking a lot of questions so as to attract this large segment of potential customers.