Insurers Face $40 Billion Market Among the Poor, Report Says

Insurance companies could tap into a potential $40 billion market globally by tailoring products for lower-income earners in emerging markets who cannot afford traditional insurance, a Swiss Reinsurance Co. report said.

An estimated 2.6 billion people who live on $1.25 to $4 dollars a day represent the “commercially viable” segment of the so-called microinsurance market, according to the report released today. Another 1.4 billion even poorer individuals need support such as government subsidies to pay the premiums, the report said.