Innovation in Insurance: Microinsurance as a Tool for Financial Inclusion in Brazil

In the first half of 2023, there was an increasing trend in individual insurance purchases in Brazil. According to data from the National Federation of Private Pension and Life (FenaPrevi), the collection from products such as life insurance, personal accident coverage, critical illness insurance, and loan protection amounted to R$41.6 billion, representing a 10% increase compared to the same period last year. However, the protection gap persists: only 27.9% of vehicles, 17% of households, and 3.5% of cultivated lands are insured, while in France this number reaches 98%, and over 90% of properties have rural insurance in the United States. This challenge was discussed at the Jornada Valor de Jornalismo em Seguros, which recently took place in São Paulo, organized by Globo in partnership with the National Confederation of Insurers (CNseg) and supported by companies such as Bradesco Seguros, MetLife, Unimed Insurance, Tokio Marine, and Zurich Seguros. The discussion focused on the need for innovation to expand access to microinsurance, especially among young people and less informed consumers about financial protection. Fábio Nogi, Superintendent of Innovation and Dentistry at Unimed Insurance, highlighted that traditional industry approaches are not sufficient to reach the target audience. He stated that most people do not fully understand insurance products, and companies need to adapt their language and strategies to become more accessible to the end consumer. This scenario reflects global trends: while countries like France and the United States already have extensive coverage in various sectors, Brazil still struggles with barriers to access and understanding. The CNseg is implementing initiatives, such as a joint project with UNICEF to include financial education and insurance education in public schools, aiming for greater financial inclusion in the future. This approach is crucial not only for individuals but also for macroeconomic development of the country, as well-structured insurance can significantly contribute to economic and social resilience during times of uncertainty. Source: Valor Econômico