Reflections from ICII 2025: Advancing inclusive insurance in Latin America

In October 2025, the 21^st International Conference on Inclusive Insurance (ICII) was held in Quito, Ecuador, hosted by the Federación Ecuatoriana de Empresas de Seguros (FEDESEG), the Junta de Política y Regulación Financiera (JPRF), the Superintendencia de Compañías, Valores y Seguros, in cooperation with Munich Re Foundation and the Microinsurance Network. Around 400 participants from over 47 countries gathered for the microinsurance industry’s annual showpiece, with several global, regional and local experts sharing their experiences. Some of the topics discussed had a distinctive local flavour. These included the local protection gap, market innovation, regulatory evolution, building trust through partnerships and lessons from specific markets. 

For the Microinsurance Network (MiN), Latin America and the Caribbean (LATAC) is one of its most active and successful regions. This year, 69 companies participated in the ICII – around 41% were members of the MiN. Out of 24 sessions, 22 comprised a MiN member as a speaker or a moderator. Importantly, the event allowed the MiN to launch its new regional Landscape Report for LATAC 2025 and introduce its new website for the Landscape of Microinsurance. This now includes dedicated hubs for data and resources to allow decision-making at scale.

Microinsurance Network’s Landscape of Microinsurance website.

Protection gaps continue to endure – both globally and in the region

Despite progress in global microinsurance uptake, protection gaps remain acute. Over 90% of vulnerable populations worldwide remain unable to access adequate insurance cover. Within Latin America alone, insurance penetration covers 9.2% of eligible individuals – this figure masks disparities across different markets and communities. Comparatively, this is lower than Asia, where 12.7% of individuals are covered. 

This region-specific gap can be attributed to fragmented distribution channels, persistent regulatory and social barriers, and product designs ill-suited to local needs. As in other regions, achieving scale remains a persistent challenge. As is maintaining relevance and being able to offer value to communities affected by economic, social and climate-related vulnerabilities. Despite this, the region has made progress, particularly in the number of markets with enabling regulations (Figure 1).

Figure 1: A snapshot of the microinsurance industry in LATAC, 2024

Source: Microinsurance Network.

How regulatory flexibility has driven sectoral growth

Benchmarking regulatory progress and barriers in the host region is now a fixture at each ICII. In LATAC, as elsewhere, regulators are often relied on for duties beyond supervision, for example, to help foster innovation. While working closely with regulators can offer benefits, there is also a risk of overregulation – especially regarding frequent reporting, KYC and anti-money laundering requirements. Overregulation can stifle product innovation and market entry.

LATAC’s experience shows how differing regulatory approaches have supported product innovation and market entry. For instance, market growth in Uruguay has happened despite a lack of substantial microinsurance regulations. Proportional know-your-customer requirements have been applied to life and savings products, with light-touch regulations used for other products. Alternative approaches, such as Ecuador’s collaborative norm-setting and Brazil’s 1966 rule for signature-free insurance, have enabled the sector to pilot, iterate and scale proportionate solutions. 

Operational fragmentation remains a regional challenge

Markets in LATAC are affected by high distribution costs: on average, each microinsurance product relies on around 1.8 channels. Agents, brokers and digital avenues are all competing for prominence. As a result, this can affect the cost and complexity of reaching marginalised groups as omnichannel distribution is often needed to access users through trusted partnerships. The likelihood of microinsurance succeeding hinges on successful alliances between insurers, regulators, distribution partners and clients. 

Some market approaches in the region have demonstrated how alternative distribution channels can improve outreach and simultaneously introduce market flexibility. For example, Peru’s use of microfinance and rural networks has helped to improve distribution. In Colombia, innovation labs run by the regulator have allowed industry players to collaboratively test and refine new products. This has led to better segment-specific targeting and greater reach.

Despite fast payouts, there is still room for improvement

Inclusive insurance growth and stickiness rely on a good customer experience, especially when it comes to claims processing. In LATAC, 84% of countries reported claim payouts that took fewer than 30 days. This was largely driven by a combination of regulatory mandates and operational innovation. Despite this, there is often a lag between an incident being reported and claims being notified – often taking up to 18 days before an evaluation is made.

Market tendencies show good use of innovation, yet gender gaps persist

The diversity of markets in the region has meant that each country has followed its own path to narrowing protection gaps. Distinct regulatory, economic and social factors mean that direct replication is neither viable nor desirable. However, innovative products can often share similar features beyond borders, despite originating through differing needs. Telehealth, home assistance and mobile-enabled financial services are now a core part of several products in the region.

Across the region, life and personal accident insurance dominate market share. These products are still essential for trust-building and client acquisition. In most cases, health insurance remains a supplementary benefit: it is often bundled with other products for greater appeal. Despite this, there are limitations in gender-disaggregated reporting: only 15% of products are designed to consider different gender dimensions. This reflects a wider sectoral need to better target women-managed households and small businesses.   

Using dialogue for change: Why Ecuador’s approach can be a model example 

While previous ICII events have helped to showcase microinsurance progress in the region and worldwide, the 2025 edition included a novel call to action for the host country. Five guiding principles were jointly declared following a high-level meeting between Ecuadorian public institutions, private companies and multilateral organisations. The principles define how to implement inclusive insurance in the country:

1. Accessibility: Affordable and simple insurance for low-income and rural populations will be provided through tailored products, subsidies and community partnerships.
2. Financial education: National programmes, local workshops and media campaigns will be used to help citizens understand insurance as a tool for financial stability and resilience. 
3. Technology and innovation: Digital platforms, mobile payments, and AI-based tools will be used to expand access to insurance, especially in remote areas. 
4. Public-private collaboration. Government, private sector and civil society will work together to design inclusive insurance policies, attract investment, and share data. 
5. Sustainability and risk management. Inclusive insurance will be used to help Ecuador face climate and disaster risks. 

“Having a long-term strategy is fundamental rather than focusing on the quick wins”

Like its predecessors, ICII 2025 explored a familiar set of topics – albeit through a different regional lens. The significant local presence meant that participants could absorb viewpoints that balanced regional realities with international experience. But, above all, the use of the event to chart a path forward represents a different approach: one that is focused on building future resilience for Ecuador and its people.